By Jeph Ajobaju, Chief Copy Editor
Four asset managers have been appointed to handle the N15 trillion ($37 billion) fund for the Infrastructure Corporation of Nigeria (InfraCo) President Muhammadu Buhari set up in November 2020 to finance roads, railway, and power projects.
Acting Central Bank of Nigeria (CBN) Corporate Communications Director, Osita Nwanisobi, confirmed that Vice President Yemi Osinbajo approved the hiring of the fund managers.
Bloomberg reports that the asset managers include
· Sanlam Infraworks (based in The Netherlands)
· AIIM, a unit of South Africa’s Old Mutual Group
· Chapel Hill Denham (based in Lagos)
· Tripple A (consortium of AfricaPlus Partners and Arc Asset Management)
· Afrinvest West Africa (Nigerian investment bank)
Buhari in February approved N1 trillion ($2.4 billion) seed fund for the take-off of InfraCo created to close Nigeria’s huge infrastructure deficit.
The remaining $34.6 for the $37 billion fund is to be raised by the fund managers.
National coverage
A senior CBN official told Nairametrics that more than one fund manager was selected to ensure national coverage in infrastructural provision.
CBN Governor Godwin Emefiele has acknowledged that InfraCo, an entity under Public Private Partnership (PPP), has generated a lot of interest from both local and international private sector fund managers.
Buhari approved in November 2020 the establishment of InfraCo wholly focused on critical infrastructural investment and will raise funds from
· The CBN
· Nigeria Sovereign Investment Authority (NSIA)
· Africa Finance Corporation (AFC)
· Pension Funds
· Local and foreign private sector development financiers
InfraCo aims to boost infrastructure investment to stimulate economic growth after Nigeria exited a second recession in four years in the fourth quarter of 2020 (Q4 2020)
And it aims to bridge national infrastructural gap with at least $3 trillion over 30 years.
CBN appoints KPMG as InfraCo adviser
The CBN in March appointed KPMG LLP as transaction adviser for InfraCo, according to Bloomberg, which quoted a source familiar with the matter who did not want to be named.
Before KPMG was picked, other bidders considered included from PricewaterhouseCoopers LLP, Boston Consulting Group, and McKinsey & Co.
In August 2020, the CBN got government approval to set up InfraCo in collaboration with the Sovereign Wealth Fund and AFC to invest in infrastructure and transport network.
InfraCo is to be managed by independent fund managers and is expected to leverage local and international funds to cover an initial five-year period.
Background articulated by Nairametrics:
· Buhari in February approved N1 trillion ($2.4 billion) seed capital for InfraCo which the CBN and its partners initiated in August 2020.
· InfraCo is to raise N15 trillion naira for power, road, and railway projects.
· Abuja in February began engaging asset managers who would help provide funds for projects and accelerate growth.
· The process was extended to March 30.
· Nigeria needs at least $3 trillion over 30 years to close its infrastructure gap, according to Moody’s Investors Service.
