ABUJA (Reuters) – The president of Nigeria has approved the establishment of a new company that will focus on infrastructure development with a seed capital of 1 billion dollars ($ 2.63 billion), the head of state’s office said on Friday .
The company, called Infra-Co, will be a public-private partnership, and the initial capital will come from the central bank, the Nigerian Sovereign Investment Authority (NSIA), and the Africa Finance Corporation, he said.
“Infra-Co will fund public asset development, rehabilitation and reconstruction, as well as invest in leading infrastructure projects for roads, railways, power and other key sectors,” President Muhammadu Buhari’s office said in a statement.
The management is chaired by the governor of the central bank, the managing director of Nigeria’s sovereign wealth fund, the president of the Africa Finance Corporation and three independent directors from the private sector, the statement said.
The goal is for the business to grow up to 15 billion naira in assets and capital, he added.
Nigeria’s weak transport and power networks have halted economic growth for decades and the distribution of wealth in the country with the largest economy in Africa, but 40% of the people live below the national poverty line of 137,430 naira ($ 360.99) per year.
($ 1 = 380.70 naira)
(Posted by Felix Onuah; Written by Alexis Akwagyiram; Edited by Raissa Kasolowsky)