Nigerian Central Bank Plans $39-Billion Fund Post Pandemic

(Bloomberg) --

Nigeria’s central bank plans to set up an independently managed fund within the next 12 months to help build critical infrastructure in the West African nation once the coronavirus pandemic is over.

The fund will start with a combination of debt and equity capital of 15 trillion naira ($39 billion) and focus on building transport networks “required to move agriculture products to processors, raw materials to factories, and finished goods to markets,” according to a statement issued by the central bank.

Africa’s most populous country requires investment of $33 billion to $35 billion annually over the next five years to close its infrastructure gap, estimated at about 45% of economic output, according to the country’s Infrastructure agency.

The initiative is part of a series of new measures announced by Governor Godwin Emefiele to “drive a self-sufficient Nigerian economy.”

Others plans include:

• Prioritizing foreign exchange for the importation of machinery and critical raw materials with a focus on “light manufacturing, affordable housing, renewable energy and cutting-edge research.”
• The central bank will consider setting aside 500 billion naira in funding for manufacturers within the next three years to “procure state-of-the-art machinery and equipment” and another fund for housing development.

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