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InfraCorp promoters target to raise $37bn by 2030

Godwin Emefiele

. Appoint Lazarus Angbazo as founding CEO

Promoters of the Infrastructure Corporation of Nigeria (InfraCorp), are targeting to raise up to $37 billion for infrastructure investments in the economy by 2030.

InfraCorp is a government-backed infrastructure investment vehicle established and co-owned by the Central Bank of Nigeria (CBN), the Africa Finance Corporation (AFC), and the Nigerian Sovereign Investment Authority (NSIA).

The Corporation, which was launched with an initial seed capital of N1trillion ($2.5billion) by the three promoters, also plans to raise three times more in private capital over the next three years, to close the infrastructure deficit in the country.

These were revealed Friday, by the Governor, Central Bank of Nigeria (CBN), Godwin Emefiele, during the signing of the Term Sheet between InfraCorp and the Independent Asset Managers, in Lagos.

This comes as Lazarus Angbazo was appointed the pioneer chief executive officer (CEO) of InfraCorp.

Regarding the infrastructure gap, Emefiele said the promoters underscored the need for private sector participation, since government funds were insufficient for national needs.  

As a result, he said: “For infrastructure projects originated by the public sector, InfraCorp’s goal is to shape projects for private sector financing and management.

“For projects originated by the private sector, InfraCorp will help shape government policy to support and sustain private sector investment.”

From public health, climate change and the energy transition, to infrastructure and beyond, the public sector cannot resolve these issues by itself. The private sector, correctly incentivized, can deploy the critical resources and capacity to deliver successfully.

Infrastructure assurance

Emefiele noted that Nigerian companies needed to be assured of the infrastructure that they rely upon to focus successfully on their competencies.

“The deficit may be large; however, with resources from the private sector, targeted incentives from the public sector and the drive of our individual citizens, I strongly believe that Nigeria will be ready, willing and able to deliver the infrastructure that will be the foundation of our development,” he added.

Besides, he said the public-private collaboration, Coalition Against COVID-19 (CA-COVID), demonstrated how successful pooling resources can be to achieve set goals.

“This type of collaboration, I believe, provides a practical template to solve many of the complex socio-economic problems that our nation faces.

“From public health, climate change and the energy transition, to infrastructure and beyond, the public sector cannot resolve these issues by itself. The private sector, correctly incentivized, can deploy the critical resources and capacity to deliver successfully.”

He said the signing event marked a major milestone as InfraCorp and the Infrastructure Asset Managers – the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers in Nigeria, and Sanlam Infraworks had concluded the initial discussions on how they would operate together to deliver infrastructure to the nation.

According to Emefiee, the promoters have worked assiduously with the Transaction Adviser – KPMG, and the Legal Advisers – Kenna Partners, Olaniwun Ajayi, and Ukiri and Lijadu to deliver InfraCorp as a catalyst to accelerate public-private solutions for Infrastructure.

He explained that the vehicle is 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 in partnership with public and private sector participants (PPP).

This will leverage public-private partnerships to unlock assets for the development and completion of projects and generate a growth multiplier effect across critical sectors.

By supporting project development, financial structuring, and private-capital mobilisation, InfraCorp would help to combat issues of underemployment and under-investment in critical nation-building assets, according to the CBN.

I look forward to working with all stakeholders to deliver competitive returns for shareholders, while driving new frontiers for Nigeria’s sustainable infrastructure development.

Angbazo appointment

Until his appointment, Angbazo was a partner, head of portfolio operations West Africa, at Helios Investments Partners. He was also a former President/CEO, General Electric (GE) Nigeria.

In that capacity, he managed GE’s businesses in power, oil and gas, renewables, healthcare, transportation, aviation, and GE capital.

He brings over 25 years of experience in infrastructure project development, investments, and capital raising; setting up new businesses; and leading global management teams.

He has deep knowledge of African markets and has worked across InfraCorp’s priority sectors including power, renewables, transport and logistics, and industry.

Commenting on his appointment, Angbazo said: “I am excited about the opportunity to drive development and innovation in infrastructure solutions for Nigeria.

“InfraCorp’s unique mandate consolidates the great work that the promoters – Central Bank of Nigeria, Africa Finance Corporation, and Nigerian Sovereign Investment Authority are doing. I look forward to working with all stakeholders to deliver competitive returns for shareholders, while driving new frontiers for Nigeria’s sustainable infrastructure development.

“Massive financing is urgently required to build the infrastructure that Nigeria deserves. The good news is that much of this investment is compatible with competitive returns for investors through leveraging the expertise, relationships, and blended finance models.”

InfraCorp will employ development finance, commercial debt, and private equity structures, supported by a blend of concessional finance, grants and “soft equity” alongside commercial equity provided by development finance institutions, private equity funds, pension fund managers and commercial investors.

InfraCorp was created to mobilize capital from the promoters, financial institutions, and private capital for critical infrastructure in support of Nigeria’s post-COVID recovery.

“InfraCorp will work with the four appointed infrastructure asset managers and leverage the promoters’ resources – assets, capital, expertise, and opportunities – to expand the overall portfolio of public and private infrastructure and industrial assets.

“Its fund-raising strategy will target high quality long-term institutional investors, sovereign wealth funds, and other local and global sources of public and private capital,” Angbazo added.

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