Nigeria sets up $2.6 billion public-private partnership company to sustain funding of infrastructure projects

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    Nigeria’s president has approved the creation of a new company that will focus on infrastructure development, with a seed capital of 1 trillion naira ($2.63 billion), the head of state’s office said on Friday.

    The company, named Infra-Co, will be a public-private partnership, and the initial capital will come from the central bank, the Nigerian Sovereign Investment Authority (NSIA), and the Africa Finance Corporation, it said.

    “Infra-Co will finance public asset development, rehabilitation and reconstruction as well as invest in cutting edge infrastructure projects for roads, rail, power and other key sectors,” President Muhammadu Buhari’s office said in a statement.

    Its 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 statement said.

    The aim is for the entity to grow to 15 trillion naira in assets and capital, it added.

    Nigeria’s poor transport and power networks have stymied economic growth for decades, holding back the distribution of wealth in the country which has Africa’s biggest economy but 40% of people live below the national poverty line of 137,430 naira ($360.99) per year.

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    Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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