CBN Appoints KPMG Transaction Adviser for InfraCorp

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By Obinna Chima

The Central Bank of Nigeria (CBN) has engaged KPMG LLP as transaction adviser for the newly-created Infrastructure Corporation of Nigeria Limited (InfraCorp).

The Director, Corporate Communications, CBN, Mr. Osita Nwasinobi, confirmed this in a telephone interview with THISDAY yesterday.

The appointment was made after considering bids by other global professional services and management consultancy firms, which included PwC, Boston Consulting Group, and McKinsey.

Nwasinobi, however, said the appointment of KPMG as transaction adviser was different from that of the asset manager, whose deadline was extended on Monday by two weeks, to March 30.

President Muhammadu Buhari had approved the launch of the N15 trillion company as part of efforts to reposition the economy and insulate it from external shocks after the COVID-19 pandemic.

The CBN Governor, Mr. Godwin Emefiele, had said the initiative would be part of efforts to ensure the diversification of the economy.

He had stated that the wholly-focused infrastructure development vehicle would be managed by an independent fund manager.

He had said: “This fund will be utilised to support the federal government in building the transport infrastructure required to move agriculture products to processors, raw materials to factories and finished goods to markets, as envisaged by the CBN ‘Going for Growth’ roundtable in March 2020.”

The promoters include the CBN, the Africa Finance Corporation (AFC) and Nigeria Sovereign Investment Authority (NSIA).

Nigeria plans to boost infrastructure investments to stimulate economic growth after exiting its second recession in four years in the fourth quarter.

The nation needs at least $3 trillion over 30 years to close its infrastructure deficit, Moody’s Investors Service had stated in a report.

Already, Vice President Yemi Osinbajo has been saddled with the responsibility of heading a steering committee to facilitate the take-off of the company.

Osinbajo’s media assistant, Mr. Laolu Akande, had said in a statement that Infraco would grow to N15 trillion in assets and capital and that it would be one of the premier infrastructure finance entities in Africa to be wholly dedicated to Nigeria’s infrastructure development.

According to him, the initial seed capital for the entity will come from the CBN, the NSIA and the AFC.