Buhari okays establishment of N1trn infrastructure firm

President Muhammadu Buhari has given the go ahead for the establishment of a N1 trillion Public-Private Partnership styled infrastructure company.

Infra-Co, as the firm is named, is expected to grow into one of the premier infrastructure finance entities in Africa and will be wholly dedicated to Nigeria’s infrastructure development.

It will finance public asset development, rehabilitation and reconstruction as well as invest in cutting-edge infrastructure projects for roads, rail, power and other key sectors.

Its concept designs had the inputs of the National Economic Council (NEC) and the Central Bank of Nigeria (CBN).

Vice President Yemi Osinbajo is heading its steering committee with the company’s assets and capital expected to reach N15 trillion over time.

The initial seed capital for the entity will come from the Central Bank of Nigeria, the Nigerian Sovereign Investment Authority, NSIA, and the Africa Finance Corporation.

The board of Infra-Co will be chaired by the Central Bank Governor and include the Managing Director of the Nigerian Sovereign Investment Authority, President of the Africa Finance Corporation, as well as representatives of the Nigerian Governors’ Forum, and the Ministry of Finance, Budget, and National Planning. The Board will also have three independent directors from the private sector.

The Buhari administration is already using the Presidential Infrastructure Development Fund (PIDF) for the execution of the 2nd Niger Bridge and the Abuja-Kaduna-Zaria-Kano Expressway among other projects, while theRoad Infrastructure Development and Refurbishment Investment Tax Credit Scheme is being deployed  for the funding of the Bodo-Bonny Bridges and Road (with the Nigeria Liquefied Natural Gas, NLNG), and the Apapa-Oshodi-Oworonshoki Expressway (with Dangote Group), among others.