FG to engage asset manager for N15tn infrastructure fund

The Federal Government has commenced measures to effectively manage about N15tn to be raised for infrastructural projects in the country in order to accelerate growth.

Already, the FG is set to engage an asset manager for the Infrastructure Development Company (Infraco).

President Muhammadu Buhari approved the establishment of the Infraco, a public-private partnership infrastructure firm, about two weeks ago, with an initial seed capital of N1tn, to tackle Nigeria’s growing infrastructure deficit.

The Infraco will help fund road projects, railways and power plants.

Nigeria would need at least $3tn over 30 years to close its infrastructure deficit, Moody’s Investors Service said in a November report.

A Bloomberg report quoted a source as saying that the Central Bank of Nigeria (CBN) and its funding partners, the Africa Finance Corporation (AFC) and Nigeria Sovereign Investment Authority (NSIA), were seeking proposals from companies to manage the project.

The fund manager is expected to coordinate the total equity capital and associated debt raise required by the company.

“We need to be innovative in our approach to developing our infrastructure in Nigeria,” CBN Governor, Mr. Godwin Emefiele, said in a text message sent by an official from the institution, adding, “We believe that Infraco will be a major game-changer in this regard.”

It was learnt that PricewaterhouseCoopers, Boston Consulting Group, McKinsey and KPMG had expressed interest in being transaction advisers in the deal; Ukiri Lijadu and Co and Kenna Partners appointed legal advisers.

Vice President Yemi Osinbajo has been saddled with the responsibility of heading a steering committee to facilitate the take-off of the company.