The Africa Finance Corporation has signed a Memorandum of Understanding with the Nigeria Sovereign Investment Authority for strategic collaboration in infrastructure investment.
Through this partnership, AFC and NSIA will support the financing, development and implementation of infrastructure projects in Nigeria, according to a statement from AFC.
Specifically, the parties will be involved in the execution of infrastructure investment transactions, leveraging mutual resources and capacity in project development, restructuring, technical appraisal, due diligence and documentation.
It is expected that the arrangement will result in several co-investments by AFC and NSIA in critical economic infrastructure for long-term benefit of the country.
The Federal Government had established the NSIA through the NSIA Act 2011 to promote fiscal stability, build a savings base for future generations and enhance the development of nation’s infrastructure.
The statement quoted the President and Chief Executive Officer of the AFC, Mr. Andrew Alli, as saying, “The scale of Nigeria’s infrastructure investment requirement can only be addressed by structured collaboration between the public and private sectors.
“The opportunities to finance, develop and accelerate the implementation of much needed infrastructure in Nigeria, through a collaborative partnership with NSIA, will not only secure a platform for accelerated infrastructure investment, but also contribute to the economic growth and industrial development of Nigeria.”
It also quoted the Managing Director of NSIA, Mr. Uche Orji, as saying, “We believe strategic partnership with organisations such as AFC is essential to fulfill the mandate of the Infrastructure Fund of the NSIA.
“The mandate of this fund is to enhance infrastructural development in Nigeria through strategic investments and the provision of a platform for attracting foreign investments. Our relationship with AFC formalises our process of engagement in the joint execution of infrastructure projects in Nigeria.”
The NSIA’s investments are made through three distinct funds: The Stabilisation Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund.
Investments made under the MoU with AFC will come through the Nigeria Infrastructure Fund, according to the statement.
AFC, a multilateral finance institution, was established in 2007 with a capital base of $1bn, to be the catalyst for private sector infrastructure investment across Africa.
