TheCable

The Central Bank of Nigeria (CBN) says it has signed the term sheet with the Infrastructure Corporation of Nigeria (InfraCorp) and four independent asset managers to develop infrastructure.

The signing took place on Friday at CBN’s office in Lagos.

A term sheet is a non-binding agreement outlining the basic terms and conditions under which an investment will be made.

Godwin Emefiele, CBN governor, said the signing was very important as it had taken almost 18 months to put this together.

He said they had concluded initial discussions on how they would operate together to deliver infrastructure to the country.

“I am happy that we have reached the state where today we are signing the term sheets between InfraCorp and four assets managers,” he said.

“What is the purpose? The first phase of this financing is to raise N14 trillion debt, plus N1 trillion equity which is being contributed by the CBN, AFC and NSIA upon signing the term sheets today.

“We will go straight into execution work because Nigeria very badly needs to develop its infrastructure.

“There are infrastructure deficits in the public and private sector and we will like to be seen that we play our part at this time to support the efforts of the government and that of the private sector to see to whatever can be done to develop the infrastructure of Nigeria.”

The infrastructure asset managers are the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers in Nigeria, and Sanlam Infraworks.

Emefiele, who doubles as the chairman of the Board of InfraCorp, noted that InfraCorp was open for business and would be unveiled to Nigerians.

He said also that Nigeria’s pension funds, banking industry and eurobonds would be used to develop the infrastructure of the country as done in emerging countries.

“There’s a lot of liquidity that is being held by our pensions managers, I understand that from the last count that the size of Nigeria’s pension funds is over 13 trillion and I’m told in another three to five years, Nigeria’s pension assets will rise to almost N25 trillion,” he added.

“In other countries where infrastructure corporations have worked, pension funds money has been used to develop infrastructure of those countries.”

He also said that the first phase of the projects would kick off in Lagos, Ibadan, Abuja, Kaduna and Kano and the second Niger bridge.

Lazarus Angbazo, CEO of InfraCorp, said the term embodies a set of relationships and the partnership that would exist between InfraCorp and the assets managers.

“It is inclusive of the division of responsibilities, it clearly states what the rights and responsibilities of each party will be and it defines the operatory between the InfraCorp and the asset managers as well as the governance structure by which we are going to execute the mandate of Mr President as nurtured by the promoters,” Angbazo said.