By Editor
Four asset managers have been approved by the federal government to manage its $37 billion investment development fund in some sectors of the economy.
The funds are for the development of roads, railways and power projects in the country.
The $37 billion is a pool of funds by a private sector-led infrastructure company of Nigeria, named Infra-Co, with an initial seed capital of N1trillion, expected to grow to N15 trillion in assets and capital over time.
The government hired Netherlands-based Sanlam Infraworks, AIIM, a unit of South Africa’s Old Mutual Group, Lagos-based Chapel Hill Denham; Tripple A consortium comprising AfricaPlus Partners and Arc Asset Management, as well as Afrinvest West Africa, a Nigerian investment bank, Bloomberg said in a report yesterday.
The report quoted Central Bank of Nigeria’s director in charge of corporate communications, Osita Nwanisobi, as saying that Vice President Yemi Osinbajo approved the hiring of money managers for the Infra-Co.
Investors in the Infrastructure Corp. of Nigeria Ltd., include the Central Bank of Nigeria, Nigeria Sovereign Investment Authority and the Africa Finance Corporation.
Following the conclusion of the hiring process, the infrastructure corporation is expected to begin full operation by the third quarter of 2021, governor of the Central Bank of Nigeria, Godwin Emefiele, said at a virtual event yesterday.
President Muhammadu Buhari had earlier this year approved N1 trillion ($2.4 billion) for the company to help close the huge infrastructure deficit in the country.
Nigeria needs at least $3 trillion over 30 years to build roads and power plants to close its infrastructure gap, according to Moody’s Investors Service.
This is needed to accelerate growth in an economy that’s just recovering from a recession.
The money managers will raise the rest of the funds. More than one manager was selected to enable adequate coverage of Africa’s most populous country and also create healthy competition, said a senior official of the central bank, who asked not to be identified, citing rules.
Nigeria hired KPMG LLP in March to act as transaction adviser for the company.
Oriental News.