ARM to launch $250m Nigerian infrastructure fund
LAGOS – Nigerian financial services firm the ARM Infrastructure Fund is close to raising $250-million in the country's first infrastructure fund, to invest in transport, energy and utility sectors across West Africa, with much of the money coming from pension funds.
The fund was expected to close by mid-August and was at the documentation stage, with various investors including some Nigerian pension funds and other institutional investors, such as the African Development Bank, MD Opuiyo Oforiokuma said.
Nigeria, Africa's most populous nation and home to 170-million people, requires around $50-billion a year for the next decade to develop badly needed infrastructure, especially for power, roads and water, to help boost economic growth.
Nigeria's pension assets have grown to $25-billion in 2014, from under $4-billion seven years ago, as the government targets schemes to try to encourage domestic savings. But the funds have traditionally invested in debt and equity portfolios.
"We are setting up a new infrastructure fund ... [The] target fund size is $250-million. This will be the first time pension funds are actually going to invest in infrastructure," Oforiokuma said on the sidelines of a pension funds conference, in Abuja.
ARM has interests in real estate, insurance and capital markets. It developed Nigeria's first toll road under a private-public partnership in the commercial hub of Lagos.
The fund will target equity stakes in airport and sea port projects across West Africa, and invest for a period of 12 years, targeting investment returns of between 18% and 20% over the period.
"We don't have basic roads, power supply and water. All of these have significant consequences for the economy, the social well being [of Nigeria]," Oforiokuma said, adding that Nigeria generates around 4 000 MW of electricity, compared with Brazil, which generates 100 000 MW.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation