The Newly established US$2.5bn Infrastructure Corporation of Nigeria (InfraCorp) has finally launched operations after months of structuring and stakeholder consultations by the Promoters – Central Bank of Nigeria (CBN), Africa Finance Corporation (AFC), Nigerian Sovereign Investment Authority (NSIA).
The promoters launched InfraCorp with an initial seed capital of one trillion naira (US$2.5 billion), with the aim that the Corporation which hold huge promise of revolutionizing Nigeria’s poor infrastructure sector would raise thrice as much in private capital over the next 3 years, and up to US$37bn for infrastructure investments in the Africa’s largest economy by 2030.
InfraCorp is a government-backed infrastructure investment vehicle established and co-owned by the Central Bank of Nigeria (CBN), Africa Finance Corporation (AFC) and Nigeria Sovereign Investment Authority (NSIA) (“the Promoters”) and managed by its own Board and management.
The vehicle has been established to harness opportunities for infrastructure development in Nigeria by originating, structuring, executing, and managing end-to-end bankable projects, managed by reputable and highly experienced infrastructure asset managers and in partnership with public and private sector participants.
InfraCorp will mainly leverage public-private partnerships to unlock assets for the development and completion of projects.
Its core mandate is to tackle Nigeria’s infrastructure deficit and generate a growth multiplier- effect across critical sectors. By supporting project development, financial structuring, and private-capital mobilization, InfraCorp is hoped will help to combat issues of underemployment and under-investment in critical nation- building assets.
In a statement which announced the official commencement of operations, the CBN noted that InfraCorp appointed 4 highly experienced asset managers in the summer of 2021, namely: Sanlam InfraWorks; Africa Infrastructure Investment Managers (AIIM); a consortium of Afrinvest Asset Management, Africa Plus Fund Partners, and ARC Asset Management; and Chapel Hill Denham.
InfraCorp will support and enable the fund managers to mobilize fundraising and investments of projects across the critical focus sectors – Energy, industrial, agricultural,, telecommunications, technology, transport, logistics, and social infrastructure.
“In recognition of the role improved infrastructure could play in the development of our economy, along with the need to leverage private sector capital in funding and developing the over N35 trillion infrastructure deficit in Nigeria, the estimated amount required to build an efficient infrastructure ecosystem in Nigeria, CBN, NSIA and AFC have now operationalized InfraCorp,” Emefiele stated.
“InfraCorp expects to raise N15 trillion of capital over the next few years leveraging on the Promoters N1 trillion of committed capital to significantly progress closing the gap.”
The Corporation will operate from the Capital City Abuja and Nigeria’s commercial hub, Lagos.
Together with external legal advisors – Olaniwun Ajayi, Kenna Partners, and Ukiri & Lijadu, InfraCorp has commenced negotiation of the term sheet and management agreement to be entered into with each of the 4 Asset Managers.
Already, InfraCorp has initiated selection of its first set of priority projects. The focus sector is transport and logistics with potential initial investment of up to N163 billion. To expeditiously deliver on its mandate, it plans a series of roundtables with key public and private sector stakeholders for the immediate realization of projects critical for Nigeria’s recovery, including MDAs, commercial banks, pension fund administrators and other financial institutions.
The Board has also been constituted with Godwin Emefiele, the CBN Governor, as Chairman. Members include Philippe Valahu, CEO, the Private Infrastructure Development Group; Patience Oniha, the Director-General, Nigeria’s Debt Management Office; Muhammad K. Ahmad, pioneer Director General, Nigerian National Pension Commission; and Kemi Christina Abdul, ex-Director, Mubadala.
The Infrastructure Partners are : Kayode Olatunji Olowolafe, Former Chairman, Lekki Concession Company; as well as representatives of the Promoters, including Kingsley Obiora, Deputy Governor (Economic Policy), CBN; Samaila Zubairu; Chief Executive Officer, AFC; and Uche Orji, Managing Director, NSIA. Ahmad Zakari. The Special Adviser to the President on Infrastructure was also appointed as an observer on the Board.
Following a highly competitive recruitment process managed by KPMG – the Transactions Advisor- the Promoters finalized the recruitment of the CEO and Managing Director, Lazarus Angbazo, a seasoned infrastructure and finance professional with over 25 years professional experience.
Angbazo was most recently Partner, Head of Portfolio Operations West Africa, at Helios Investments Partners, and former President and CEO of General Electric (GE) Nigeria, managing GE’s businesses in Power, Oil & Gas, Renewables, Healthcare, Transportation, Aviation, and GE Capital.
He serves on several public and private company boards including Nasarawa State Government’s Economic Advisory Council, Bingham University, Axxela, Tema LNG, AFGRI, Starsight, Partners International, and Opportunity International.
Angbazo will be supported by a team of experienced industry experts currently being recruited. In the interim, the CEO is being supported by a lean transition team seconded by the promoters.
Meanwhile, the Board has since held its inaugural Board of Directors Meeting on February1, 2022.
“The Board will be governed by a suite of governance documentation, which were considered at the Inaugural Board Meeting to ensure a world class governance structure for InfraCorp to position it to attract the financing required to achieve its mandate,” the CBN stated.
Key resolutions from the inaugural board meeting include the ratification of the appointment of Godwin Emefiele, CON as the Chairman of the Board; appointment of Lazarus Angbazo as the Chief Executive Officer and Managing Director; the appointment of the 4 Asset Managers; and approval of the Company’s business plan amongst other key matters.
The appointment of the Board and the recruitment of a highly experienced Chief Executive Officer (CEO) completes a series of robust and transparent processes conducted to international standards in accordance with President Muhammadu Buhari’s approval for InfraCorp in January 2021.
“I am pleased that as promoters after months of structuring and stakeholder engagements, we have set up a world class board and appointed a highly experienced CEO to drive InfraCorp.
The CEO is now setting up his team and working closely with the asset managers to deliver the first set of strategic projects. InfraCorp is expected to set the standard template that will help in enabling greater private sector funding for public infrastructure projects in Nigeria,” Emefiele stressed.
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