FG sets up $25bn Infrastructure Investment Fund

From Isaac Anumihe, Abuja and Chinenye Anuforo
Federal Government yesterday set up a $25 billion
infrastructure investment  fund with a view to closing the
nation’s huge infrastructure gap.
Speaking at the inauguration of the Capital Market Master
Plan Implementation Council (CAMMIC), National Investor
Protection Fund (NIPF) and the launch of the Corporate
Governance Scorecard for quoted companies by the
Securities and Exchange Commission (SEC) in Lagos
Thursday, the Minister of Finance, Mrs. Kemi Adeosun,
said that  in the current environment of significant revenue
squeeze and other budgetary constraints, these
investments 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
mobilising the capital needed to address Nigeria’s
infrastructure challenge,” she said.
The Minister, represented by the Permanent Secretary,
Ministry of Finance, Dr. Mahmoud Isa-Dutse, said an
efficient and vibrant capital market is an indispensable
feature of any modern economy supplying affordable
medium-to-long-term capital needed for growth as they
facilitate mobilisation of savings, accelerate capital
formation, provide investment avenues and enhance
efficient allocation of capital to growth sectors as no
country has been able to develop without a thriving capital
market.
“Nigeria needs and deserves a capital market that is
characterised by high levels of liquidity, depth, breadth and
sophistication to enable rapid socio-economic
development. Going through the Master Plan, it is
heartwarming to note that this is the type of capital market
you envision for our country and we desperately need such
a market to emerge in order to tackle Nigeria’s biggest
challenges of huge infrastructure deficit and unacceptable
level of unemployment.
As you all know, to grow our economy, we require
significant funds to modernise our critical infrastructure,”
the Minister said.
In a statement, she expressed worry that currently, less
than 3 per cent of Nigerians invest in the capital market
and that even more worrisome is the fact that only 0.2 per
cent of Nigerians invest in mutual funds.
“Imagine the kind of savings to be mobilised, the liquidity
to be injected and the sophistication to be developed if we
improve these numbers by bringing millions of more
Nigerians to invest in the capital market.
For Nigerians of faith and people who prefer ethical
investments, we must deepen the non-interest product
space so they can be involved in wealth creation
opportunities the capital market offers.
“For a country and economy of our size, there is no
reason why we should not be able to actualise the targets
and aspirations we have set for ourselves within the
Master Plan. With diligent implementation, we shall
emerge as Africa’s most modern, efficient and
internationally competitive capital market that catalyses
Nigeria’s emergence as a top 20 global economy, greater
coordination and hopefully, better results. As we
inaugurate the council that will lead advocacy for the
Capital Market Master Plan, I urge everyone here to see
this as the important national assignment it represents,”
she said.
She assured that as the Minister in charge of supervising
the capital market, she would  support the SEC Nigeria to
ensure that this project is successful and where necessary
is willing to support and  facilitate the achievement of key
initiatives within the Master Plan.
Earlier,  Director General of SEC, Mounir Gwarzo, said
SEC’s enabling law, Investments and Securities Act (ISA)
2007, in foresight requires the SEC to set up a national
investor compensation scheme. Specifically, Section 13(k)
of the Investment and Securities Act 2007, enjoins the
commission to act in the public interest having regard to
the protection of investors and the maintenance of fair and
orderly markets, and to this end establish a nationwide
trust scheme to compensate investors whose losses are
not covered under the Investors Protection Funds
administered by Securities Exchanges and Capital Trade
Points.
Gwarzo said the 10-year Nigerian Capital Market Master
Plan, which has become SEC’s guiding document,
considers the investor protection fund as a critical
ingredient for restoring and sustaining investor confidence.
It therefore firmly recommended the urgent establishment
of the fund. Since the new management at SEC assumed
duty, the NIPF and other capital market initiatives have
received priority attention.
The SEC, the DG said, has played its part and will continue
to take its investor protection mandates with all
seriousness, adding, “we have provided the take-off grant
for the initial operation of this fund. Going forward,
however, the entire capital market community should
come together to discuss details of how we can all
contribute to continued funding for this critical market
vehicle.”