The Central Bank of Nigeria, CBN and Infrastructure Corporation (Infracorp) of Nigeria are partnering with four independent Asset managers on how to commence the delivery of infrastructure to the country.
The Corporation and asset managers -the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers, Nigeria, and Sanlam Infraworks have formally signed terms sheet in Lagos.
At the event, the Governor, Central Bank of Nigeria, CBN, and Chairman Infracorp, Mr. Godwin Emefiele, disclosed 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.
According to him,part of the N15 trillion debt earmarked for the projects would be sourced from pension funds, banking industry and Eurobonds.
He said that the first phase of the projects would kick off in Lagos, Ibadan, Abuja, Kaduna and Kano and second Niger bridge,adding that the developmeny marks a major milestone as InfraCorp and the Infrastructure Asset Managers – the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers in Nigeria, and Sanlam Infraworks – have concluded the initial discussions on how they will operate together to deliver infrastructure to the Nation
He expressed that though economic storms continues, “However, as global trade networks retreat and agreements fail, Africa moves against this trend providing opportunities to companies in Nigeria. For Nigerian companies to focus successfully on their competencies, they need to be assured of the infrastructure that they rely upon.
“The deficit may be large; however, with resources from the private-sector, targeted incentives from the public sector and the drive of our individual citizens, I strongly believe that Nigeria will be ready, willing and able to deliver the infrastructure that will be the foundation of our development.” Emefiele said.
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 InfraCorp 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”
Speaking, the Managing Director Infracorp, Dr. Lazarus Angbazo explained that Infracorp 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.”
