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Nigeria seeks asset managers for $2.6 bln new infrastructure firm

Published 27/02/2021, 13:37
Updated 27/02/2021, 13:42
© Reuters.

© Reuters.

By Chijioke Ohuocha
ABUJA, Feb 27 (Reuters) - Nigeria's central bank is seeking
asset managers for a new $2.6 bln infrastructure investment
company set up to develop the country's crumbling transport
networks and boost economic growth.
The asset managers will originate and manage infrastructure
projects, generating return from investments, the bank said on
Saturday. The deadline for submission of proposals is March 16.
Nigeria emerged out of economic recession in the fourth
quarter of 2020, despite a contraction in the year as a whole.
But growth is fragile as poor infrastructure have stymied the
economy for decades, holding back the distribution of wealth in
Africa's biggest economy.
President Muhammadu Buhari approved the creation of
Infrastructure Corporation of Nigeria (InfraCorp) in February to
focus on infrastructure development, with a seed capital of 1
trillion naira ($2.6 billion).
Initial capital will come from the central bank, the
Nigerian Sovereign Investment Authority (NSIA), and the Africa
Finance Corporation, the central bank has said.
Economists say the poor state of Nigeria's infrastructure
has put at risk the Buhari government's ambitions for turning
the country into a manufacturing hub and growing the agriculture
sector.
In 2017, the government set up the Development Bank of
Nigeria to boost credit to small-scale businesses that make up
almost of half of the economy.
Now the government wants to fix its crumbling roads and rail
network that have made it hard to move agricultural and finished
goods to markets.
Buhari has pledged to strengthen the agricultural sector, to
reduce Nigeria's costly food imports and diversify the economy
away from an over-reliance on oil. But access to long-term funds
in local currency has been a major hurdle.
InfraCorp's board will be chaired by the central bank
governor, the managing director Nigeria's sovereign wealth fund,
the president of the Africa Finance Corporation, and three
independent directors from the private sector.
The aim is for the entity to grow to 15 trillion naira in
assets and capital, the central bank said.

($1 = 380.58 naira)

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