We will raise infrastructure funds from N13tn pension funds, others – CBN
Central Bank of Nigeria Governor Godwin Emefiele said Nigeria plans to finance infrastructure projects with bank and pension funds.
According to him, the federal government is seeking to reduce its external debts by generating funds through internal sources to finance its projects.
Emefiele made this known when explaining how the government plans to increase N15tn’s funding for the Infrastructure Corporation of Nigeria Limited.
The governor spoke shortly after the bankers’ retreat in Lagos recently.
He said: âWe have already said that N1tn on N15tn would be equity, brought in by the CBN, the African Finance Corporation and the Nigerian Sovereign Investment Authority. The remaining 14tn N would be accessible from the debt market.
âAnd I have to say that we are happy here that this is funding in naira. Banks have a large pool of funds, pension administrators have a large pool of funds, and we are reasonably optimistic that over 50 percent, or two-thirds of this money will be raised locally.
âBefore we start to think about accessing international finance, we would try as much as possible to limit the debt in foreign currencies, knowing in particular that some of these projects and revenues are going to be generated with the local currency. When foreign currency is needed, we will mine it as well and can then use it. ”
Emefiele noted that around 170 billion naira had been provided as bridge financing for three InfraCo projects already totaling N1tn.
He said there was unused funds that could be mobilized, adding that InfraCo had been set up to reassure local investors to put their funds into the project.
The President of the Association of Pension Fund Operators of Nigeria, Mr. Wale Odutola, in an interview with our correspondent, said that there are no dormant funds in the pension sector.
He said: âWe have laws that govern how pension funds are managed and how they can be invested. I think whatever we have to do will be done within these regulations.
âPension money is not idle, it is invested. They are all fully invested and we have asset allocations that we invest in.
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