The Buhari administration is proposing a new N15 trillion state-owned infrastructure company which will be led by the Central Bank of Nigeria, Godwin Emefiele, Governor of the bank has said.
Emefiele who revealed this in his press briefing following the meeting of the Monetary policy Committee of the CBN, July ,2020 however, did not disclose how the N15 trillion capital of the company will be funded, beyond that it will “leverage on local and foreign sources of funding” and will be deployed to finance what he called “ critical infrastructure .”
Emefiele said it will be jointly owned with the African Finance Corporation, AFC and the Nigeria Sovereign Investment Authority, NSIA, both financial institutions which are promoted or owned by Nigeria.
The country already has an Infrastructure Bank of Nigeria which offers financing for infrastructure projects through commercial banks.
Most of the country’s infrastructure projects are being financed through loans from the China government and multilateral finance banks as the World Bank .The new infrastructure development company may represent a shift in thinking by the Buhari administration as to how to finance the country’s infrastructure projects.
For several years under the current administration, the CBN has played an increasingly active role in dictating public monetary and sometimes, fiscal policies and often takes the burden of implementing or enforcing such policies.
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