FG approves formation of N1trn PPP company to tackle infrastructure deficits

Saturday, 13 February 2021 04:34

FG approves formation of N1trn PPP company to tackle infrastructure deficits

font size decrease font size increase font size
Print
Email

Rate this item

(0 votes)

PRESS RELEASE

President Muhammadu Buhari has approved the establishment of a Public Private Partnership styled Infrastructure company named Infra-Co with an initial seed capital of N1 Trillion.

It is envisaged that, over time, the entity will grow to N15 Trillion in assets and capital.

Infra-Co will be one of the premier infrastructure finance entities in Africa and will be wholly dedicated to Nigeria’s infrastructure development. The entity has been developed with concept designs from the National Economic Council (NEC) and the Central Bank of Nigeria.

The President had asked Vice President Yemi Osinbajo to chair a Steering Committee tasked with setting up the company.

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

The board of Infra-Co will be chaired by Central Bank Governor and include Managing Director of the Nigerian Sovereign Investment Authority, President of Africa Finance Corporation, as well as representatives of Nigerian Governors Forum, and Ministry of Finance, Budget and National Planning. The Board will also have 3 independent directors from the private sector.

To address Nigeria's infrastructure deficit, the Buhari Administration continues to explore innovative options, including through financing initiatives such as the Presidential Infrastructure Development Fund (PIDF) designed to cater for the 2nd Niger Bridge, the Abuja-Kaduna-Zaria-Kano Expressway, and other projects.

There is also the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme which is being used 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.

Infra-Co 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.

Laolu Akande

Senior Special Assistant to the President on Media & Publicity

Office of the Vice President

12th February, 2021