By Akanimo Sampson
KPMG LLP has been appointed by the Central Bank of Nigeria (CBN) as the transaction adviser for the newly-created Infrastructure Corporation of Nigeria Limited (InfraCorp).
The appointment is coming after considering bids by other global professional services and management consultancy firms, which included PwC, Boston Consulting Group, and McKinsey.
CBN’s Director of Corporate Communications, Osita Nwasinobi, who confirmed the development said the appointment of KPMG as transaction adviser was different from that of the asset manager, whose deadline was extended on Monday by two weeks, to March 30.
President Muhammadu Buhari had approved the launch of the N15 trillion company as part of efforts to reposition the economy and insulate it from external shocks after the COVID-19 pandemic.
CBN Governor, Godwin Emefiele, had said the initiative would be part of efforts to ensure the diversification of the economy. He added that infraCorp will be managed by an independent fund manager.
He said: “This fund will be utilised to support the Federal Government in building the transport infrastructure required to move agriculture products to processors, raw materials to factories and finished goods to markets, as envisaged by the CBN ‘Going for Growth’ roundtable in March 2020.”
Nigeria plans to boost infrastructure investments to stimulate economic growth after exiting its second recession in four years in the fourth quarter.
The nation needs at least $3 trillion over 30 years to close its infrastructure deficit, Moody’s Investors Service had stated in a report.
Already, Vice President Yemi Osinbajo has been saddled with the responsibility of heading a steering committee to facilitate the take-off of the company.
Media aide to the Vice-President, Laolu Akande, had said in a statement that InfraCorp would grow to N15 trillion in assets and capital and that it would be one of the premier infrastructure finance entities in Africa to be wholly dedicated to Nigeria’s infrastructure development.
According to him, the initial seed capital for the entity would come from the CBN, the NSIA and the AFC.
The Infrastructure Corporation of Nigeria Limited (InfraCorp), is a dedicated privately-managed infrastructure and industrial vehicle, aimed to harness opportunities for Nigeria’s infrastructure development by originating, structuring, executing and managing end-to-end bankable projects in that space.
The promoters include the CBN, the Africa Finance Corporation (AFC) and Nigeria Sovereign Investment Authority (NSIA).
A process to select an asset manager for the InfraCorp was also extended by two weeks to March 30, according to a communique signed by Dr Kingsley Obiora, a Deputy Governor at the CBN, on behalf InfraCorp partners on Monday.