FG Seeks Asset Manager for N15tn Infraco Fund

*PwC, KPMG, others apply to be transaction advisers

The federal government plans to hire an asset manager for its
new Infrastructure Development Company (Infraco), designed to raise
as much as N15 trillion ($36.7 billion) for infrastructural
projects and to accelerate growth.

President Muhammadu Buhari about a fortnight ago, had approved
the establishment of the Infraco, a Public-Private
Partnership-styled infrastructure company with an initial seed
capital of N1 trillion, to tackle Nigeria’s growing infrastructure
deficit.

A report yesterday by Bloomberg quoted a source as saying that
the Central Bank of Nigeria (CBN) and its funding partners, the
Africa Finance Corporation (AFC) and Nigeria Sovereign Investment
Authority (NSIA), are seeking proposals from companies to
independently manage the infrastructure company’s capital-raising
plan.

The Infraco will help fund projects from roads to railways and
power plants.
The fund manager will be responsible for coordinating the total
equity capital and associated debt raise required by the company,
according to the source.

Asset managers seeking the role must have been active in
infrastructure financing.
“We need to be innovative in our approach to developing our
infrastructure in Nigeria,” CBN Governor, Mr. Godwin Emefiele, said
in a text message sent by an official from the institution. “We
believe that Infraco will be a major game-changer in this
regard.”

Already, PricewaterhouseCoopers, Boston Consulting Group,
McKinsey and KPMG have expressed interest in being transaction
advisers in the deal, according to the source.

Ukiri Lijadu and Co. and Kenna Partners have been appointed
legal advisers, the source said.
PricewaterhouseCoopers and KPMG didn’t immediately answer calls
seeking comment on Wednesday, while calls to Ukiri Lijadu and
McKinsey didn’t connect. Representatives at Kenna Partners and BCG
couldn’t comment straight away when called.

Nigeria plans to boost infrastructure investments to stimulate
economic growth after exiting its second recession in four years in
the fourth quarter.

The nation needs at least $3 trillion over 30 years to close its
infrastructure deficit, Moody’s Investors Service said in a
November report.

Already, Vice President Yemi Osinbajo has been saddled with the
responsibility of heading a steering committee to facilitate the
take-off of the company.

Osinbajo’s media assistant, Mr. Laolu Akande, had said in a
statement at the time that Infraco would grow to N15 trillion in
assets and capital and that it would be one of the premier
infrastructure finance entities in Africa to be wholly dedicated to
Nigeria’s infrastructure development.

According to him, the initial seed capital for the entity will
come from the CBN, the NSIA and the AFC.

Akande had stated: “The board of Infra-Co will be chaired by the
central bank governor and include the Managing Director of the
Nigerian Sovereign Investment Authority, President of the Africa
Finance Corporation, as well as representatives of the Nigeria
Governors’ Forum, and the Ministry of Finance, Budget and National
Planning. The board will also have three independent directors from
the private sector.

“To address Nigeria’s infrastructure deficit, the Buhari
administration continues to explore innovative options, including
through financing initiatives such as the Presidential
Infrastructure Development Fund (PIDF), designed to cater for the
second Niger Bridge, the Abuja-Kaduna-Zaria-Kano Expressway, and
other projects.

“There is also the Road Infrastructure Development and
Refurbishment Investment Tax Credit Scheme which is being used for
the funding of the Bodo-Bonny bridges and road (with the Nigeria
Liquefied Natural Gas, NLNG), and the Apapa-Oshodi-Oworonshoki
Expressway (with Dangote Group), among others.

*PwC, KPMG, others apply to be transaction advisers

The federal government plans to hire an asset manager for its
new Infrastructure Development Company (Infraco), designed to raise
as much as N15 trillion ($36.7 billion) for infrastructural
projects and to accelerate growth.

President Muhammadu Buhari about a fortnight ago, had approved
the establishment of the Infraco, a Public-Private
Partnership-styled infrastructure company with an initial seed
capital of N1 trillion, to tackle Nigeria’s growing infrastructure
deficit.

A report yesterday by Bloomberg quoted a source as saying that
the Central Bank of Nigeria (CBN) and its funding partners, the
Africa Finance Corporation (AFC) and Nigeria Sovereign Investment
Authority (NSIA), are seeking proposals from companies to
independently manage the infrastructure company’s capital-raising
plan.

The Infraco will help fund projects from roads to railways and
power plants.
The fund manager will be responsible for coordinating the total
equity capital and associated debt raise required by the company,
according to the source.

Asset managers seeking the role must have been active in
infrastructure financing.
“We need to be innovative in our approach to developing our
infrastructure in Nigeria,” CBN Governor, Mr. Godwin Emefiele, said
in a text message sent by an official from the institution. “We
believe that Infraco will be a major game-changer in this
regard.”

Already, PricewaterhouseCoopers, Boston Consulting Group,
McKinsey and KPMG have expressed interest in being transaction
advisers in the deal, according to the source.

Ukiri Lijadu and Co. and Kenna Partners have been appointed
legal advisers, the source said.
PricewaterhouseCoopers and KPMG didn’t immediately answer calls
seeking comment on Wednesday, while calls to Ukiri Lijadu and
McKinsey didn’t connect. Representatives at Kenna Partners and BCG
couldn’t comment straight away when called.

Nigeria plans to boost infrastructure investments to stimulate
economic growth after exiting its second recession in four years in
the fourth quarter.

The nation needs at least $3 trillion over 30 years to close its
infrastructure deficit, Moody’s Investors Service said in a
November report.

Already, Vice President Yemi Osinbajo has been saddled with the
responsibility of heading a steering committee to facilitate the
take-off of the company.

Osinbajo’s media assistant, Mr. Laolu Akande, had said in a
statement at the time that Infraco would grow to N15 trillion in
assets and capital and that it would be one of the premier
infrastructure finance entities in Africa to be wholly dedicated to
Nigeria’s infrastructure development.

According to him, the initial seed capital for the entity will
come from the CBN, the NSIA and the AFC.

Akande had stated: “The board of Infra-Co will be chaired by the
central bank governor and include the Managing Director of the
Nigerian Sovereign Investment Authority, President of the Africa
Finance Corporation, as well as representatives of the Nigeria
Governors’ Forum, and the Ministry of Finance, Budget and National
Planning. The board will also have three independent directors from
the private sector.

“To address Nigeria’s infrastructure deficit, the Buhari
administration continues to explore innovative options, including
through financing initiatives such as the Presidential
Infrastructure Development Fund (PIDF), designed to cater for the
second Niger Bridge, the Abuja-Kaduna-Zaria-Kano Expressway, and
other projects.

“There is also the Road Infrastructure Development and
Refurbishment Investment Tax Credit Scheme which is being used for
the funding of the Bodo-Bonny bridges and road (with the Nigeria
Liquefied Natural Gas, NLNG), and the Apapa-Oshodi-Oworonshoki
Expressway (with Dangote Group), among others.