The Central Bank of Nigeria (CBN) plans to set up an independently managed fund within the next 12 months to help build critical infrastructure once the coronavirus pandemic is over.
The fund will start with a combination of debt and equity capital of N15 trillion ($39 billion) and focus on building transport networks “required to move agriculture products to processors, raw materials to factories, and finished goods to markets,” according to a statement by the apex bank.
Nigeria requires investment of $33 billion to $35 billion annually over the next five years, to close its infrastructure gap, estimated at about 45% of economic output, according to the country’s Infrastructure agency.
The initiative is part of a series of new measures announced by the CBN governor, Mr. Godwin Emefiele, to “drive a self-sufficient Nigerian economy.”
Others plans include:
- Prioritizing foreign exchange for the importation of machinery and critical raw materials with a focus on “light manufacturing, affordable housing, renewable energy and cutting-edge research.”
- The central bank will
consider setting aside N500 billion in funding for manufacturers within the
next three years to “procure state-of-the-art machinery and equipment” and
another fund for housing development.
- Agency Report