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Friday, July 1, 2022

CBN, InfraCo Sign Agreement with Asset Managers on N15trn Investments

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The Central Bank of Nigeria, CBN and Infrastructure Corporation (InfraCo)  of Nigeria has concluded plans with four independent Asset managers on how to commence the delivery of infrastructure to the country.

The plans were made formal with the signing of terms sheet by the corporation and asset managers namely the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers, Nigeria, and Sanlam Infraworks in Lagos.

Speaking at the event, the Governor, Central Bank of Nigeria, CBN, and Chairman InfraCo, Mr. Godwin Emefiele said that the first phase of the financing would be to raise N14 trillion debt and N1 trillion equity which is being contributed by the CBN, AFC and NSIA.

He said that part of the N15 trillion earmarked for the projects would be sourced from pension funds, banking industry and Eurobonds.

Emefiele also mentioned that the first phase of the projects would kick off in Lagos, Ibadan, Abuja, Kaduna and Kano and second Niger bridge.

He said: “We are happy that we have reached a stage where we are signing the term sheet between InfraCo and our four assets managers.

“Today, marks a major milestone as InfraCo and the Infrastructure Asset Managers, the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers here in Nigeria, and Sanlam Infraworks ; have concluded the initial discussions on how they will operate together to deliver infrastructure to the nation.

“The first phase of this financing is to raise N14 trillion debt plus N1 trillion equity which is being contributed by the CBN, AFC and NSIA.

“What we are trying to say here is this that there is a lot of local capital and liquidity in Nigeria and that we would like to say that you would begin by talking to people, the  institutions that have this liquidity to come in and take up this kind of debt and that is why I am trying to say  that out of the N14 trillion that will be debt we imagine that on looking at it on a straight line we should be looking at N8- N9 trillion available say within the Nigerian banking industry and the pension fund administrations.

” And of course, naturally the rest will be raised through foreign debt which you were talking about Eurobond and the rest of them. So yes, there will be Eurobond, but because we are moving very speedy, very fast we will be looking at more in Nigeria.

“There is a lot of liquidity today not just in the banking industry, there is a lot of liquidity that is currently held by our pension funds managers.”

“Upon signing the terms sheet today we will go straight into execution mode because  Nigeria very badly needs to develop its infrastructure.

“So let’s not forget these are projects from viability stand points and that will be generating naira revenue. Most of the roads will be carrying the traffic cam, they would be rolled but we will try as much as possible to ensure that the tolls are not too high and becomes so burdensome on the road users.

“We are putting private sector capital here and we need to ensure that those capital will be returned back the way it should be returned to the providers of capital. “

On his part, the Managing Director InfraCo, Dr. Lazarus Angbazo explained that InfraCo is dedicated to harnessing opportunities for infrastructure development in Nigeria adding:

”These projects would be managed privately by asset managers that are private entities and they would do this in partnership with public and private sector participants to provide long and attractive investment returns required not just in terms of financial returns but also in terms of social impact.”

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