The Central Bank of Nigeria (CBN) has signed the Term Sheet between the infrastructure Corportaion of Nigeria (InfraCorp) and the Independent Asset Managers to develop the country’s infrastructure.
The CBN Governor, Mr Godwin Emefiele, expressed joy that they had concluded the initial discussions on how they would operate together to deliver infrastructure to the country.
The signing took place at the CBN’s office in Tinubu Square in Lagos on Friday.
“Let me emphasise that today is a very important day. We have worked now for almost 18 months, trying to put this together.
“I am happy that we have reached the state where today we are signing the term sheets between infracorp and four assets managers.
“What is the purpose, 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 upon signing the term sheets today.
“We will go straight into execution work because Nigeria very badly needs to develop its infrastructure.
“There are infrastructure deficit in the public and private sector and we will like to be seen that we play our part at this time to support the efforts of the government and that of the private sector to see to whatever can be done to develop the infrastructure of Nigeria,” he said.
The Infrastructure Asset Managers are the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers here in Nigeria, and Sanlam Infraworks.
The apex bank governor, also the chairman of the Board of InfraCorp, added that InfraCorp was open for business and would be unveiled to Nigerians.
Emefiele said also that Nigeria’s pension funds, banking industry and Eurobonds would be used to develop the infrastructure of the country as done in emerging countries.
“There’s a lot of liquidity that is being held by our pensions managers, I understand that from the last count that the size of Nigeria’s pension funds is over N13 trillion and I’m told in another three to five years, Nigeria pension assets will rise to almost N25 trillion.
“In other countries where infrastructure corporations have worked, pension funds money have been used to develop infrastructure of those countries,” he said.
He said also that the first phase of the projects would kick off in Lagos, Ibadan, Abuja, Kaduna and Kano and second Niger bridge.
The Chief Executive Officer of InfraCorp, Dr Lazarus Angbazo, said the term embodies a set of relationship and the partnership that would exist between the infracorp and the assets managers.
“It is inclusive of the division of responsibilities, it clearly states what the rights and responsibilities of each party will be and it defines the operatory between the infracorp and the asset managers as well as the governance structure by which we are going to execute the mandate of Mr President as nurtured by the promoters,” Angbazo said.
InfraCorp is a dedicated privately-managed infrastructure and industrial vehicle that will harness opportunities for Nigeria’s infrastructure development by originating, structuring, executing and managing end-to-end bankable projects in that space.
