President Muhammadu Buhari has approved the setting up of a company with around $2.6 billion called Infra-Co. The company will fast-track development of critical infrastructure, with around $2.6 billion in initial financing.
The company, Infra-Co, will be one of the top infrastructure finance entities in Africa and will be totally dedicated to Nigeria’s infrastructure development, the presidency said in a statement. Infra-Co will operate as a public-private partnership and will be initially funded by the Central Bank of Nigeria (CBN), the Nigerian Sovereign Investment Authority and the Africa Finance Corporation.
According to the statement, the company will focus on developing public assets and reconstruction as well as new roads, rail, power and other key infrastructure sector projects. The IMF expects Nigeria’s economy to contract by at least 3 per cent this year, a situation many fear will further deepen the country’s infrastructure crisis and worsen an economy already struggling with the impact of the pandemic.