As countries around the world respond differently to the coronavirus outbreak, the Central Bank of Nigeria, among other timely responses, is due to establish an infrastructure development vehicle worth a combined debt and equity of N15tr.
The was disclosed by the governor, Godwin Emefiele, in a paper entitled Turning the COVID-19 Tragedy Into An Opportunity For A New Nigeria.
In the paper, the CBN governor stated that the outbreak of the virus, which started in China,“rapidly permeated and profoundly changed the world” leaving in its wake unprecedented damages resulting in deaths, stretching of medical resources – human and materials – beyond limits, and economic crisis.
No doubt, the outbreak of the pandemic has further exposed Nigeria’s underlying challenges, particularly as it affects basic infrastructure. And with no one to say with certainty the extent of the impact post-COVID-19, the infrastructure development vehicle becomes necessary.
The proposed InfraCo, the apex bank boss said, will act as a vehicle to build infrastructure across the nation.
“The CBN will promote the establishment of InfraCo PLC, a world-class infrastructure development vehicle, wholly focused on Nigeria, with combined debt and equity take-off capital of N15tr, and managed by an independent infrastructure fund manager.
“This fund will be utilised to support the Federal Government in building the transport infrastructure required to move agricultural produce to processors, raw materials to factories, and finished goods to markets, as envisaged at the CBN Going For Growth Roundtable in March 2020.”
Admittedly, Nigeria greatly suffers from huge infrastructure deficit, which has affected the country’s growth.
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