In a bid to deal with Nigeria’s infrastructure deficit, President Muhammadu Buhari has approved the establishment of a firm called Infra-Co.
The development was announced in a statement on Friday, February 12 by the Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande, Naija News understands.
Akande in the communique titled ‘President Buhari approves formation of trillion naira company to address infrastructure deficit’, revealed that the firm will assume the responsibility of tackling Nigeria’s current infrastructure deficit, adding that it would take off the task with an initial seed capital of N1trillion.
Naija News understands that the funds will come through the Central Bank of Nigeria, the Nigerian Sovereign Investment Authority and the Africa Finance Corporation. The SSA revealed that President Buhari has directed Vice-President Yemi Osinbajo to chair a Steering Committee tasked with setting up the company.
The statement read, “President Muhammadu Buhari has approved the establishment of a Public-Private Partnership styled Infrastructure company named Infra-Co with an initial seed capital of N1trillion.
“It is envisaged that, over time, the entity will grow to N15trillion 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 and nd the Central Bank of Nigeria.
“The President had asked Vice President Yemi Osinbajo, SAN, to chair a Steering Committee tasked with setting up the company.
“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.”
Akande further noted that the incumbent government would continue to explore innovative options, “including through financing initiatives such as the Presidential Infrastructure Development Fund designed to cater for the 2nd Niger Bridge, the Abuja-Kaduna-Zaria-Kano Expressway, and other projects.
He also mentioned 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,” he added.
Meanwhile, the presidency on Thursday declared that President Muhammadu Buhari appointed the immediate past service chiefs as non-career ambassadors as a reward for their service and loyalty, Naija News reports.
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