Nigeria hires money managers - including SA names - for R540bn infrastructure fund

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Nigeria needs at least $3 trillion over 30 years to build roads and power plants to close its infrastructure gap.
Nigeria needs at least $3 trillion over 30 years to build roads and power plants to close its infrastructure gap.
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Nigeria has picked four asset managers to run a R540-billion fund set up to drive investment in roads, railways and power projects in Africa’s largest economy.

Vice-president Yemi Osinbajo approved hiring money managers for the Infrastructure Corp. of Nigeria, according to central bank spokesperson Osita Nwanisobi. Investors in the Infrastructure Corp. of Nigeria, include Central Bank of Nigeria, Nigeria Sovereign Investment Authority and the Africa Finance Corporation. This completes a process that started in March.

The government hired Netherlands-based Sanlam Infraworks (which is part of SA's Sanlam Group); African Infrastructure Investment Managers (AIIM), Old Mutual; Lagos-based Chapel Hill Denham; Triple A consortium comprising AfricaPlus Partners and Arc Asset Management; as well as Afrinvest West Africa, a Nigerian investment bank.

Following the conclusion of the hiring process, the infrastructure Corporation is expected to begin full operation by the third quarter of 2021, governor of the Central Bank of Nigeria, Godwin Emefiele, said at a virtual event on Tuesday.

President Muhammadu Buhari earlier this year approved 1 trillion naira (R35 billion) for the company to help close the huge infrastructure deficit in Africa’s largest crude producer. The west African nation needs at least $3 trillion over 30 years to build roads and power plants to close its infrastructure gap, according to Moody’s Investors Service. This is needed to accelerate growth in an economy that’s just recovering from a recession.

The money managers will raise the rest of the funds. More than one manager was selected to enable adequate coverage of Africa’s most populous country and also create healthy competition, said a senior official of the central bank, who asked not to be identified citing rules.

Nigeria hired KPMG in March to act as transaction advisor for the company.


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