ABUJA (Reuters) – Nigeria’s president approved the creation of a new company focused on infrastructure development, with initial capital of 1 trillion naira (US $ 2.63 billion), said the head of state’s office on Friday. market.
The company, called Infra-Co, will be a public-private partnership and the initial capital will come from the central bank, the Nigeria Sovereign Investment Authority (NSIA) and Africa Finance Corporation, he said.
“Infra-Co will finance the development, rehabilitation and reconstruction of public goods, as well as invest in cutting-edge infrastructure projects for roads, railways, energy and other key sectors,” said President Muhammadu Buhari’s office in a statement.
His board will be chaired by the governor of the central bank, the managing director of Nigeria’s sovereign wealth fund, the president of Africa Finance Corporation and three independent directors of the private sector, the statement said.
The goal is for the entity to grow to 15 trillion naira in assets and capital, he added.
Nigeria’s weak transportation and energy networks have hindered economic growth for decades, preventing the distribution of wealth in the country with Africa’s largest economy, but 40% of the population lives below the national poverty line of 137,430 naira ($ 360, 99) per year.
($ 1 = 380.70 naira)
(Reporting by Felix Onuah; Writing by Alexis Akwagyiram; Editing by Raissa Kasolowsky)