Nigeria seeks fund managers for $37bn infrastructure projects

*The country is currently seeking proposals from fund management companies to independently manage the infrastructure company’s capital-raising plan to fund capital projects as roads, railways and power plants

*PricewaterhouseCoopers, Boston Consulting Group, McKinsey and KPMG expressed interest in being transaction advisers on the deal

Alexander Davis | ConsumerConnect    

In a strategic move to accelerate economic growth and development in Africa’s largest economy, Nigeria plans to hire an asset manager for the country’s new Infrastructure Corporation of Nigeria Limited (InfraCorp), designed to raise as much as N15 trillion ($36.7 billion) for projects, including roads, railways and power plants.

It was learnt that the Central Bank of Nigeria (CBN) and its funding partners, Africa Finance Corporation (AFC) and state-owned Nigeria Sovereign Investment Authority (NSIA), are seeking proposals from companies to independently manage the infrastructure company’s capital-raising plan, reports Bloomberg.

Recall President Muhammadu Buhari February 2021 approved the government’s seed capital of N1 trillion for the InfraCorp, along with some private investment.

The fund manager will be responsible for coordinating the total equity capital and associated debt raise required by the company, the source stated.

Asset managers seeking the role must have been active in infrastructure financing.

Mr. Godwin Emefiele, Governor of CBN, in a text-message sent by an official from the institution was quoted to have said: “We need to be innovative in our approach to developing our infrastructure in Nigeria.

“We believe that InfraCorp will be a major game-changer in this regard.”

Meanwhile, PricewaterhouseCoopers, Boston Consulting Group, McKinsey and KPMG expressed interest in being transaction advisers on the deal.

Ukiri Lijadu and Co. and Kenna Partners were appointed legal advisers, according to report.

ConsumerConnect reports Nigeria as Africa’s most populous country plans to boost infrastructure investments to stimulate economic growth after exiting a second recession in four years in the fourth quarter of 2020.

Moody’s Investors Service in a November 2020 report stated that the country requires at least $3 trillion in the next 30 years to significantly address its current infrastructure deficit.

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