The Central Bank of Nigeria CBN, has today 22nd July 2020 announced plans to set up a ₦15 trillion infrastructure development company that will, according to the Governor of the CBN, Godwin Emefiele, harness local and international funding to fastrack reconstruction of strategic and vital infrastructure in the country. The proposed Company, which will be managed by an Independent Infrastructure Fund Manager, IIFM, will have the CBN, African Finance Corporation (AFC), and the Nigerian Sovereign Wealth Investment Authority (NSIA) as co-owners. The Federal Government has already approved the plan by CBN.
The current minister for Works and Housing, Babatunde Raji Fashola, had in July 2020 spoke about the need for the Federal Government to address the issue of paucity of funds for critical infrastructure by establishing infrastructure bond. The then minister of Power, Works and Housing, had suggested this during the ministerial screening exercise in the National Assembly, saying that the Federal Government needed to establish a ₦10 trillion infrastructure bond.
The IIFM will mobilize local and foreign capital.
The ₦15 trillion Infrastructure Development Company will support the Federal Government to build the transport infrastructure required to move agriculture and other products to processors; raw materials to factories; and finished goods to major markets.
There still is a huge infrastructural problem in the country. Nigeria has endured slow infrastructural development over the years, with an investment need of about ₦30 trillion annually. With the political will of the Federal Government of Muhammadu Buhari, there has been substantial consideration for capital costs in the budgets. And the tempo is maintained, the country could begin to progress towards sustainable development of infrastructure.
More details soon.