CBN plans N15trn consortium to boost infrastructure development
The Central Bank of Nigeria (CBN) has announced plans to establish a N15 trillion infrastructure development company.
Godwin Emefiele, CBN governor, announced the initiative after the monetary policy committee (MPC) meeting on Monday.
He said the company will use local and international funding for the rebuilding of critical infrastructure across the country for an initial period of five years.
Emefiele said the infrastructure development company will be co-owned by the CBN, African Finance Corporation (AFC), and the Nigerian Sovereign Wealth Investment Authority (NSIA).
The CBN governor added that the company will be managed by an independent infrastructure fund manager.
In a communique released after the meeting, the MPC commended the federal government for approving the CBN plan to establish the company.
“The committee also commended the federal government for the approval to establish a CBN-led Infrastructure Development Company, which will leverage local and international funds for the rebuilding of critical infrastructure across the country,” the communique read.
“This entity, which will be wholly focused on Nigeria and Nigerians alone will be co-owned by the CBN, the Africa Finance Corporation (AFC) and the Nigeria Sovereign Investment Authority (NSIA), but exclusively managed by an independent infrastructure fund manager (IIFM) that will mobilize local and foreign capital to support the federal government in building the transport infrastructure required to move agriculture and other products to processors, raw materials to factories, and finished goods to markets.
“The sum of N15 trillion is projected over five years for the initial run. The committee noted with satisfaction the CBN’s immediate work on the updates and timelines for the establishment of this much-needed entity.”
Nigeria has experienced slow infrastructural development over the years while leaders of successive administrations have claimed to improve the state of the country’s infrastructure, citizens argue that more can be done.
Civil society groups have also alleged that the crime rate in the country is as a result of poor infrastructure.
In December 2019, Abubakar Aliyu, minister of state for works and housing, said President Muhammadu Buhari’s administration has made great improvement in the delivery of infrastructures such as roads and railways, across the country.
Meanwhile, Buhari said Nigeria will get better if the needed infrastructure is put in place.
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