The Central Bank of Nigeria (CBN) is coordinating commercial banks, pension funds and other financial institutions to raise N1.5trillion to fund road, power and port facilities through a special purpose vehicle in collaboration with the federal government and key development finance agencies.
The Governor of Central Bank of Nigeria, Mr. Godwin Emefiele, said this on Wednesday night at a presidential dinner to round off the Going for Growth 2.0 Roundtable organised by the bank in Abuja.
His soothing news came just as the apex bank said yesterday that the Naira was not in danger of devaluation, explaining that the nation’s microeconomic fundamentals remain very strong.
Emefiele had told his host, President Muhammadu Buhari, that the private sector had made commitments to ensure the implementation of resolutions at the round table session, if the government provides a conducive environment.
According to him, participants at the event have canvassed for the necessity for greater synergy between the private and public sectors as a veritable platform to address the challenges militating against growth.
The CBN governor said participants had promised to raise the N1.5 trillion to fund critical infrastructure in the country, adding that six key roads and seaport projects would later be identified for funding.
According to him, the special purpose vehicle (SPV) conceived by the participants to fund the projects is currently being designed and would be presented for implementation in October.
He listed the benefits of the SPV to include the reduction in the cost of transporting goods and improvement in the efforts to attain a double-digit growth rate.
The CBN boss also highlighted suggestions made by the session to improve broadband penetration, agricultural production and manufacturing.
He said: “Participants stressed the need for greater collaboration between the public and private sector in addressing some of the emerging challenges to growth. “One key highlight was the need to ensure that the Nigerian economy is self-sufficient in the production of key goods and services, as this would strengthen our buffers and insulate our economy from external headwinds.
“Participants from the financial sector agreed to create a special purpose vehicle working with the federal government, and key development finance agencies. The well-structured SPV, will be used to mobilise close to N1.2 trillion in funds from banks, pension funds and other financial institutions, to fund road, power, and port infrastructure. Six key road projects and the seaport projects would be identified for funding.
“The framework for this SPV is currently being worked on and will be ready for implementation by October 2020. When implemented the SPV will help to reduce the burden of government financing of infrastructure projects and enable the government to focus on funding other priority areas. It will also reduce the cost of transporting goods across the country for farmers, SMES and manufacturers. More importantly, it will help improve our ability to attain double-digit growth rates.”
Participants at the event included the President of Dangote Group, Alhaji Aliko Dangote; Chairman of Zenith Bank, Mr. Jim Ovia, and notable captains of industry.
The event was also graced by top government functionaries such as the Vice President, Professor Yemi Osinbajo (SAN); Secretary to the Government of the Federation, Mr. Boss Mustapha, and the Minister of Trade and Investment, Chief Adeniyi Adebayo.
