Nigeria's president approves set up of $2.6bn infrastructure firm

Nigeria’s president has approved the creation of a new company that will focus on infrastructure development, with a seed capital of NGN1 trillion ($2.63 billion).

The company, named Infra-Co, will be a public-private partnership, and the initial capital will come from the central bank, the Nigerian Sovereign Investment Authority, and the Africa Finance Corporation.

Its board will be chaired by the central bank governor, the managing director Nigeria’s sovereign wealth fund, the president of the Africa Finance Corporation, and three independent directors from the private sector. The aim is for the entity to grow to NGN15 trillion in assets and capital.

“Infra-Co will finance public asset development, rehabilitation and reconstruction as well as invest in cutting edge infrastructure projects for roads, rail, power and other key sectors,” President Muhammadu Buhari’s office said.