Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), says the Infrastructure Corporation of Nigeria (Infra-Co) will be unveiled in October 2021.
He disclosed this in his address at the 14th annual banking and finance conference organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja on Tuesday.
On February 12, President Muhammadu Buhari approved the establishment of the company to focus on critical infrastructural investments.
The new company is expected to grow to N15 trillion in assets and capital over time, while the initial seed capital will come from the Central Bank of Nigeria, the Nigerian Sovereign Investment Authority, NSIA, and the Africa Finance Corporation (identified as the promoters).
The Lagos-based Chapel Hill Denham, Tripple A, a consortium comprising AfricaPlus Partners, Arc Asset Management, and Afrinvest West Africa, are among the asset managers of the company.
Speaking at the event, Emefiele said it is important that the banking sector pay attention to providing long term finance for infrastructure development in the country.
He expressed optimism that the Infra-Co would act as a catalyst for growth in Nigeria.
“In this regard, I am pleased to announce that InfraCorp, the infrastructure company being created by the CBN, African Finance Corporation and the Nigerian Sovereign Investment Authority to raise N15trn, will be unveiled in October 2021,” Emefiele said.
“InfraCorp would enable the use of mostly private capital to support infrastructure investment that will have a multiplier effect on growth across critical sectors.
“The purpose of the N15 trillion being raised is to address some of our infrastructure needs while providing reasonable returns to investors.
“We believe this well-structured fund can act as a catalyst for growth in the medium and the long run. The support of the banking community will be important in achieving this objective.”
Emefiele also said the measures put in place by the apex bank to prevent the economic crisis spilling into a financial crisis at the height of the COVID-19 pandemic had paid up.
According to him, key indicators in the banking sector continued to reflect that the banking sector remained strong, resilient and healthy.
“Capital and liquidity ratio in the banking sector has remained above the prudential limit of 15.5 and 41.3 percent respectively,” the CBN governor explained.
“Our non-performing ratio in the banking industry in July 2021, stood at 5.4 per cent, reflecting a continued improvement from 6 per cent in September 2020.
“Clearly, Nigeria’s banks have become not only strong and resilient but have also carved a good niche in the world to consolidate on the growth and resilience of the banks in the last decades.”
He added that the banking sector remained well-positioned to support the recovery efforts of the monetary and fiscal authorities.