Nigeria's Infrastructure Bank raises $274m for Lagos-Ibadan carriageway rehabilitation
The Infrastructure Bank of Nigeria has raised N50bn ($274m) as the first tranche of the proposed N167bn ($916m) for the rehabilitation of the 127km Lagos-Ibadan dual carriageway.
Infrastructure Bank managing director Adekunle Oyinloye said that the amount raised represents 30% of the proposed amount and a closure of the tranche for the rehabilitation, reconstruction and expansion of the dual carriageway.
Oyinloye made the announcement at the official signing of a memorandum of understanding with four commercial banks, including Access Bank, Ecobank, Diamond Bank and Standard Chartered Bank in Lagos.
The project will get funds from local and international financiers and investors that form a consortium of the bank and expected to complete within a period of 24 to 30 months.
Oyinloye urged the banks to provide a balance of N117bn ($642m) for the project's second tranche and said more local and foreign investors are interested in the project financing.
Funding under the second-tranche is expected to begin in six months.
Access Bank managing director Herbert Wigwe advised more banks to involve themselves into the project.
He added saying that the four banks partnering on the rehabilitation, reconstruction and expansion of the Lagos-Ibadan dual carriageway are demonstrating commitment to arresting the infrastructure deficit of the country.
Ecobank group banking executive director Foluke Aboderin said that the agreement signing was a major landmark in their negotiations that were carried out for a nine-month period.