Thursday, 26 November 2015

$25billion infrastructure fund coming - says Kemi Adeosun.

$25b infrastructure fund coming
•Mrs Adeosun


The Federal Government plans to set up a $25 billion (about N4.9 trillion) infrastructure fund that will be invested in key sectors of the economy to bridge financing.
Finance Minister  Mrs Kemi Adeosun yesterday broke the news in Lagos at the inauguration of the Capital Market Master Plan Implementation Council (CAMMIC), National Investor Protection Fund (NIPF), and Corporate Governance Scorecard for quoted companies by the Securities and Exchange Commission (SEC).
Mrs. Adeosun said the $25 billion infrastructure fund was part of efforts to bridge the gap between government revenue and required funding for major infrastructure needed to accelerate the development of the economy.
According to her, in the current environment of significant revenue squeeze and other budgetary constraints, the investments needed for infrastructure will clearly not come from government coffers alone.
“We believe this is where the capital market can really make itself relevant by stepping in to close the funding gap. Government is already looking to set up a $25 billion fund wholly dedicated to infrastructure investments. A crucial assignment we have for the capital market community is to come up with other innovative ways of mobilizing the capital needed to address Nigeria’s infrastructure challenge,” Adeosun, who was represented by Permanent Secretary of Finance, said.
She pointed out that an efficient and vibrant capital market is an indispensable feature of any modern economy as it supplies affordable medium-to-long term capital needed for growth.
“Nigeria needs and deserves a capital market that is characterized by high levels of liquidity, depth, breadth and sophistication to enable rapid socio-economic development,” Adeosun said.
According to her, the current 10-year capital market master plan could catalyse the development of the type of capital market that Nigeria desperately needs to tackle Nigeria’s biggest challenges of huge infrastructure deficit and unacceptable level of unemployment.
She however expressed concern that less than three per cent of Nigerians are currently investing in the capital market and even more worrisome, that only 0.2 per cent of Nigerians invest in mutual funds.
“Imagine the kind of savings to be mobilized, the liquidity to be injected and the sophistication to be developed if we improve these numbers by bringing millions more Nigerians to invest in the capital market.”

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