Norrenberger acquires 60 per cent stake in Infrastructure Bank
Norrenberger, an integrated financial services group, has stated that its acquisition of a 60 per cent equity stake in The Infrastructure Bank (TIB), would position the institution for greater engagement.
Announcing the completion of the deal, which began in 2019, the Chairman, Norrenberger Group, Alhaji Ibrahim Aliyu, stated that the Central Bank of Nigeria (CBN) approved the transaction at the weekend, noting that the deal followed established protocols and the necessary regulatory procedures.
According to him, the admission of private capital in TIB Plc’s equity as permitted in its establishment Act has created the first Public-Private Partnership (PPP) spectacle of reform and innovation in the infrastructure finance space in Nigeria.
He described the transaction as a milestone towards Norrengerger’s strategic infrastructure mission, stating that the company would leverage the acquisition to create new opportunities and growth potentials for the benefit of all parties involved.
He said the bank has the mandate to raise and manage funds for infrastructure development projects in the country in line with its establishing Act.
Furthermore, he said aside provision of custom-made financial solutions to projects in its focus sectors namely Transportation, Power & Renewable Energy, Mass Housing and District Development, Urban Infrastructure and Municipal Finance projects, it would also lend its expertise to contribute to discourse on development strategy, with associated policy formulation and guidelines.
Aliyu explained that the Infrastructure Bank Plc (formerly known as Urban Development Bank of Nigeria Plc) was established in 1992 under Decree 51, as Urban Development Bank Ltd. with the mandate to foster the rapid development of infrastructure across the country.
He said the bank is a private sector-led, but Government-sponsored Development Finance Institution (DFI), whose previous ownership structure comprises the three tiers of government (Federal, state and local governments), the Nigeria Labour Congress, and the private sector block.
The Chairman of The Infrastructure Bank, Alhaji Lamis Dikko, described the transaction as a ‘win-win’ for everyone; the Norrenberger group, selling shareholders, remaining shareholders and the infrastructure space in Nigeria especially at a time the country is grappling with huge infrastructure deficit.
“Norrenberger has differentiated itself through excellent service delivery, and we will continue in that culture. I believe that the new umbrella under which The Infrastructure Bank will be operating will act as a springboard for us and our mission.”