President Muhammadu Buhari has approved the establishment of a Public Private Partnership, PPP, styled Infrastructure company named Infra-Co with an initial seed capital of one trillion naira.
Mr Buhari has also asked Vice President Yemi Osinbajo to chair a Steering Committee tasked with setting up the company.
Mr Osinbajo’s spokesman, Laolu Akande, in a statement on Friday in Abuja, said it was envisaged that over time, the entity would grow up to N15 trillion in assets and capital.
Infra-Co will be one of the premier infrastructure finance entities in Africa and will be wholly dedicated to Nigeria’s infrastructure development.
The entity has been developed with concept designs from the National Economic Council (NEC) and the Central Bank of Nigeria (CBN).
The initial seed capital for the entity will come from the CBN, 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 NSIA, and President of the Africa Finance Corporation.
Others in the board are 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.
To address infrastructure deficit, the Federal Government continues to explore innovative options, including through financing initiatives such as the Presidential Infrastructure Development Fund (PIDF) designed to cater for the 2nd Niger Bridge, the Abuja-Kaduna-Zaria-Kano Expressway, among others.
There is also the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme which is being used for the funding of the Bodo-Bonny Bridges and Road (with the Nigeria Liquefied Natural Gas, NLNG).
The scheme is also used for funding of the Apapa-Oshodi-Oworonshoki Expressway (with Dangote Group), among others.
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.