BusinessDay

AFC signals greater Nigeria investments, partners NSIA on infrastructure

The Africa Finance Corporation (AFC) is signalling a greater push to invest in Nigeria’s infrastructure space as it formalised a strategic collaboration with the Nigeria Sovereign Investment Authority (NSIA).

The AFC on Tuesday signed a Memorandum of Understanding (MoU) with NSIA to collaborate to support the financing, development and implementation of infrastructure projects in Nigeria.

The parties will specifically collaborate in the origination and execution of infrastructure investment transactions in Nigeria, leveraging the mutual resources and capacity in the areas of projects development, structuring, technical appraisal, due diligence and documentation.

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Andrew Alli, president and chief executive officer of AFC, said, “The scale of Nigeria’s infrastructure investment requirement can only be addressed by structured collaboration between the public and private sectors. The opportunities to finance, develop and accelerate the implementation of much needed infrastructure in Nigeria, through a collaborative partnership with NSIA, will not only secure a platform for accelerated infrastructure investment, but also contribute to the economic growth and industrial development of Nigeria.”

The cost to bridge Nigeria’s infrastructure deficit has been put at close to $200 billion over 10 years by the Urban Development Bank of Nigeria.

The strategic collaboration is expected to result in several co-investments by AFC and NSIA in critical economic infrastructure, for the long term benefit of Nigeria.

“We believe strategic partnership with organisations such as AFC is essential to fulfill the mandate of the Infrastructure Fund of the NSIA,” Uche Orji, managing director of NSIA, said.

“The mandate of this fund is to enhance infrastructural development in Nigeria through strategic investments and provision of a platform for attracting foreign investments. Our relationship with AFC formalises our process of engagement in the joint execution of infrastructure in Nigeria.”

Nigeria Sovereign Wealth Fund (SWF), with seed capital of $1 billion –N160 billion – was set up to invest savings made from the difference between budgeted oil prices and actual market prices.