Buhari approves N1trn company to build infrastructure

President Muhammadu Buhari has approved the establishment of a N1 trillion infrastructure company (Infra-Co) to focus on critical infrastructural investments.

Laolu Akande, senior special assistant on media and publicity to Vice-President Yemi Osinbajo, said in a press statement on Friday that the new entity is expected to grow to N15 trillion in assets and capital over time.

Akande said Buhari had asked Osinbajo to chair a steering committee tasked with setting up the company.

“The Infra-Co will be one of the premier infrastructure finance entities in Africa and will be wholly dedicated to Nigeria’s infrastructure development,” the statement read.

“The entity has been developed with concept designs from the National Economic Council (NEC) and the Central Bank of Nigeria.

“The initial seed capital for the entity will come from the Central Bank of Nigeria, the Nigerian Sovereign Investment Authority, NSIA, and the Africa Finance Corporation.

“The board of Infra-Co will be chaired by the Central Bank Governor and include the Managing Director of the Nigerian Sovereign Investment Authority, President of the Africa Finance Corporation, as well as representatives of the Nigerian Governors Forum, and the Ministry of Finance, Budget and National Planning.

“The board will also have three independent directors from the private sector.”

He added that the Infra-Co will finance public asset development, rehabilitation and reconstruction as well as invest in cutting edge infrastructure projects for roads, rail, power and other key sectors.

The federal government has been exploring ways to finance infrastructure and bridge the infrastructure deficit.

At present, the construction of the 2nd Niger Bridge and the Abuja-Kaduna-Zario-Kano Expressway is funded under the Presidential Infrastructure Development Fund (PIDF).

The Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme is being used for the funding of the Bodo-Bonny Bridges and Road (with the Nigeria Liquefied Natural Gas) and the Apapa-Oshodi-Oworonshoki Expressway (with Dangote Group).