FG Seeks Fund Manager For N15 Trillion Infrastructure Company

The Federal Government of Nigeria is going to hire an asset manager for the newly set up Infrastructure Corp. of Nigeria Ltd. (InfraCorp), which is to raise $36.7 billion (about N15 trillion naira) for growth acceleration projects in Africa's largest economy.

According to a Bloomberg report, an anonymous source stated that the Central Bank of Nigeria (CBN) and its funding partners, Africa Finance Corporation (AFC) and state-owned Nigeria Sovereign Investment Authority, are seeking proposals from companies to independently manage the infrastructure company’s fund-raising plan.

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The source also stated that the fund manager will be responsible for coordinating the total equity capital and associated debt raise required by the company and that asset managers seeking the role must have been active in infrastructure financing.

Earlier this month, President Muhammadu Buhari approved N1trillion as initial seed capital for the infrastructure company, which is meant to help fund projects from roads to railways and power plants.

PricewaterhouseCoopers, Boston Consulting Group, McKinsey, and KPMG have reportedly shown interest in being transaction advisers on the deal. Also, Ukiri Lijadu and Co. and Kenna Partners have been appointed legal advisers, according to the reports.

Central bank Governor Godwin Emefiele highlighted the need to be innovative in approaching infrastructural development in Nigeria while affirming that InfraCorp will be a "major game-changer".

After reportedly exiting its second recession in four years, the nation seeks ways to boost infrastructure investments to stimulate economic growth. However, Africa's largest economy will need a minimum of $3trillion over the next 30 years to cover its infrastructure deficit, according to a November report by The Moody Investors.