Managing Director of Pecora Capital, Aaron Smith, has agreed to raise $2 billion over the next 18 months for Nigerian infrastructure projects as a long-term investor, adding that he expects the fund to achieve returns of 25 percent a year over its 7-year lifespan.
Smith said areas of possible investment included agriculture, telecommunications and transport as the fund hopes to take advantage of the huge demand for improved infrastructure in a country of around 190 million people.
“I understand that is a concern and we’ve thought about it, but we definitely don’t foresee over the time frame we’ve set out that we’ll have any problems getting money out of the country. The fundamentals and demographics in Nigeria, in terms of population, in terms of infrastructure deficits, all offer huge opportunity and the availability of high returns,” said Smith
The $2 billion infrastructure investment is coming at a time President Muhammadu Buhari is trying to attract foreign direct investment to help support an economy that slipped into contraction in the first quarter this year as lower oil prices hammered Africa’s largest crude exporter.
The Nigerian fund will be based in the Cayman Islands and hopes to attract investment from the U.S., Asia and Europe.
