..As Assets Managers Sign Term Sheet
The Governor of the Central Bank of Nigeria, CBN, and Chairman of the Infrastructure Corporation of Nigeria, InfraCorp, Mr Godwin Emefiele, says the corporation has opened for business to both local and foreign investors.
Mr Emefiele stated this at InfraCorp signing of Term Sheet with Independent Asset Managers in Lagos.
Mr Emefiele pointed out that this marks a major milestone as InfraCorp and the four Infrastructure Asset Managers have concluded the initial discussions on how they will operate together to deliver infrastructure to the nation.
He said the corporation is expected to raise over N15 trillion to support investment in critical infrastructure in Nigeria and so far, N1 trillion has been provided as seed funds by the promoters to support the operations of InfraCorp.
Mr Emefiele noted 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, Africa Finance Corporation and the Nigerian Sovereign Investment Authority.
He said that part of the N15 trillion debt earmarked for the projects would be sourced from pension funds, banking industry and Eurobonds.
Mr Emefiele also noted that the first phase of the projects would kick off in Lagos, Ibadan, Abuja, Kaduna and Kano and second Niger bridge.
“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”.
According to the CBN Governor, there is a lot of liquidity not just in the banking industry but by pension funds managers.
Mr Emefiele noted that upon signing the terms sheet they will go straight into execution mode because the nation is in very badly need 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 tolled 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 Infracorp, Dr. Lazarus Angbazo explained that Infracorp is dedicated to harnessing opportunities for infrastructure development in Nigeria .
Dr Angbazo further explained that 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.
The event was attended by people from the public and private sector.