The Monetary Policy Committee (MPC) has okayed the Central Bank of Nigeria (CBN)-led N15 trillion five-year Infrastructure Development Company meant to deepen economic development.
The MPC also lauded the Federal Government for the approval to establish Infrastructure Development Company, which will leverage local and international funds for rebuilding of critical infrastructure across the country.
This entity, which will be focused on Nigerians, will be co-owned by the CBN, the Africa Finance Corporation (AFC) and the Nigeria Sovereign Investment Authority (NSIA).
It will be managed by an Independent Infrastructure Fund Manager (IIFM) that will mobilise local and foreign capital to support the Federal Government in building the transport infrastructure required to move agriculture and other products to processors, raw materials to factories, and finished goods to markets.
The amount is projected over five years for the initial run. The committee noted with satisfaction the CBN’s work on the updates and timelines for the establishment of this much-needed entity.
On the state of the financial system, the Committee noted the decrease in non-performing loans ratio to 6.4 per cent at end-June 2020 from 9.4 per cent in the corresponding period of 2019, on account of increased recoveries, write-offs and disposals.
The Committee expressed confidence in the stability of the banking system and urged the CBN to monitor the compliance of commercial banks to its prudential and regulatory measures to sustain the soundness and safety of the banking industry.
“In light of the CBN’s continued effort to find innovative ways of using local resources to diversify the sources of the country’s Foreign Exchange Reserves, the Committee welcomed the decision of the Central Bank of Nigeria to develop a Gold Purchase Framework under the Federal Government’s Presidential Artisanal Gold Mining Development Initiative,” the group said.
