Infrastructure Bank Seeks to Attract N1tn in Five Years
•Embarks on recapitalisation to raise minimum share capital to N10bn in immediate-term, N100bn within 18 months
•Privatisation drive produces Norrenberger as core investor, as bank unveils new corporate logo
James Emejo in Abuja
The acting Managing Director/Chief Executive, The Infrastructure Bank (TIB), Nkiru Chime, yesterday disclosed that the bank is currently undergoing a recapitalisation drive to make it more resilient.
She said the bank plans to raise the minimum share capital to N10 billion in the immediate- term and N100 billion in the medium-term, within the next 18 months.
Norrenberger Financial Group recently emerged as the core investor of TIB following a privatisation exercise that resulted in the private sector entities holding 79.56 per cent equity in the bank.
The federal government which is represented by the Federal Ministry of Finance Incorporated (MOFI) holds a 10 per cent stake in the bank while the state governments represented by the Nigeria Governors’ Forum (NGF) accounted for 5.22 per cent of equity holding in TIB.
Also, all local governments in Nigeria represented by the Association of Local Governments of Nigeria (ALGON) account for 5.22 per cent stake in the rebranded infrastructure company.
The bank has consequently unveiled a new corporate logo to reflect its new equity composition.
Speaking at the ceremony in Abuja, Chime said the privatisation of TIB was meant to bridge the funding gap that exists between the availability of public funds and the immense capital requirements of infrastructure projects. She said the company would be committed to unlocking developmental opportunities and accelerating socio-economic development in various sectors.
She said the bank would also create avenues for forward-looking and innovative solutions in infrastructure development, as well as mobilise funding and attract private sector participation in sustainable Infrastructure projects – and deploy capabilities and technical know-how of successfully- operating entities in the financial services industry to bear on the bank’s operations.
She said, “Under Norrenberger’s leadership, TIB has emerged as a trailblazer in the realm of Public-Private Partnerships (PPPs).
“This innovative approach to Infrastructure financing has set the stage for collaboration between the public and private sectors, unlocking new avenues for funding and project execution.”
She also told THISDAY that, “We are excited about President Bola Tinubu’s ambition for this country and we are excited at what we have seen so far.
“We believe that the new government is going to be the beginning of the journey for the transformation of the infrastructure landscape in Nigeria.
“It is what we have been expecting and it is what we believe the country deserves. We can already see the tax reforms that are ongoing and we can already see all the policies being put in place by the government to enable the environment.”
Chime said, “We believe that private sector participation is key in ensuring that the right kind of capital is attracted to Infrastructural development and we see the government doing things already to make that happen.
“We are confident and positive that we are going to see that landscape change and capital attracted to bridge the infrastructure gaps in the country.
“And we are going to focus specifically on energy which we believe is the key to transforming economic development in the country because it is the foundation on which other development is hinged.
“TIB is going to drive capital mobilisation toward infrastructure development and our medium-term goal is to bring in about N1 trillion to bridge the infrastructure deficit in the country and this is coming in largely from the private sector.”
Also, speaking with THISDAY, the Group Managing Director/Chief Executive, Norrenberger, Mr. Anthony Edeh, said TIB remained a critical company in Noremberger’s bid to support the present administration in infrastructural development.
He said, “So, what we are doing is to bring the celebrated capacity of the private enterprise into infrastructure development at the government side.
“We know that before now, there had been a lot of inconsistencies, and inefficiencies in financing government Infrastructural contracts.
“What we want to do is to meet the government with the skills that exist in the private sector and use those skills to support the government in ensuring that infrastructural development is fast-paced and done in a way and manner that meets Nigeria’s national demands for infrastructure.
“We know that the only way a country can move forward is through the level of its infrastructure and we believe strongly that with the new government and the new economy that is emerging, that infrastructure will play a key role in the development of Nigeria, and we are ready to support government to meet that expectation.”
On his part, Director, Federal Ministry of Finance/Non-executive, TIB, Mr. Ali Mohammed, commended the bank’s equity and capital mobilisation efforts, particularly at a period when the world is moving to private sector players to attract foreign capital.
He said the injection of new assets will lead to innovation and new ideas as well as enhance the bank’s dynamism and support the diversification agenda of the present administration.
