CBN’s N15trn Infrastructure Funds Takes Off Soon, Mulls International Finance Centre

By Tosin Olatokunbo

Ahead the take off the N15 trillion infrastructure Fund, the Godwin Emefiele, Central Bank of Nigeria, CBN has disclosed that plan is in the offing to establish the Nigerian version of International Financial Centre,IFC.

The CBN had in July, after its monthly MPC meeting, said it has secured approval from the federal government to establish the fund which will now take off next month.

The apex bank said in a communique that “the committee also commended the federal government for the approval to establish a CBN-led Infrastructure Development Company, which will leverage local and international funds for the rebuilding of critical infrastructure across the country,” the communique read.

“This entity, which will be wholly focused on Nigeria and Nigerians alone will be co-owned by the CBN, the Africa Finance Corporation (AFC) and the Nigeria Sovereign Investment Authority (NSIA), but exclusively managed by an independent infrastructure fund manager (IIFM) that will mobilize local and foreign capital to support the federal government in building the transport infrastructure required to move agriculture and other products to processors, raw materials to factories, and finished goods to markets.

“The sum of N15 trillion is projected over five years for the initial run. The committee noted with satisfaction the CBN’s immediate work on the updates and timelines for the establishment of this much-needed entity.

The center, the apex bank Governor said will take off in the next 12 month, modelled after those in London, New York, and Singapore. The centre, Emefiele said will complement the bank’s efforts to promote investment in the country.

The CBN Governor made the announcement at the opening of the Chartered Institute of Bankers of Nigeria, CIBN, on Tuesday in Abuja, the nation’s capital. He is the Chief Host of the event.

According to him “to consolidate on the growth and resilience of Nigerian banks in the last decade, your excellency, your Central Bank, will, in the next 12 months, be establishing The Nigerian International Financial Centre, NIFC.

“The NIFC will act as an international gateway for Capital and investments, driven by technology and payment system infrastructure.

“This new financial hub, will curate local and international banks to make them global champions. The NIFC will be a 24/7 financial centre that will complement London, New York and Singapore financial centres. It will enable an acceleration of our home grown initiatives such as the Infracorp Plc, the N15 trillion infrastructure fund which we will be launching in October.

“The NIFC will also complement our initiatives on the Nigerian Commodity Exchange, NCE.”

He also said the new financial hub would bring together local and foreign banks to create global champions.

“The NIFC will take advantage of our existing laws such as the BOFIA 2020, NEPZA and other CBN regulations to create a fully global investment and a financial hub where monies, ideas, and technology will move freely without hindrance,” Emefiele said..