U.S. fund aims to raise $2 billion for Nigerian infrastructure

Nigeria experiencing worst economic slump in decades

* Crisis offers opportunity - fund manager says

* President Buhari trying to attract foreign investment

By Joe Brock

ABUJA, June 14 U.S. fund manager Pecora Capital said on Tuesday it will raise $2 billion over the next 18 months for Nigerian infrastructure projects, a rare show of investor confidence during a period of deep crisis in Africa's largest economy.

Nigerian President Muhammadu Buhari is trying to attract foreign direct investment to help support an economy that slipped into contraction in the first quarter this year as lower oil prices hammered Africa's largest crude exporter.

A string of attacks on oil pipelines by militants in the restive Niger Delta has compounded Nigeria's economic problems and many investors have complained about the poor current business environment.

"As a long-term investor we see a time of crisis as an opportunity," Aaron Smith, Managing Director of Pecora, told Reuters. He expected the fund to achieve returns of 25 percent a year over its 7-year lifespan.

A more than halving of oil prices since 2014 has sapped the supply of foreign currency in Nigeria, making it difficult for businesses to import basic equipment or for foreigners to repatriate dollars, raising the risks for investors.

Nigeria still relies on oil exports for around 90 percent of foreign exchange earnings and 70 percent of government revenues.

"I understand that is a concern and we've thought about it but we definitely don't foresee over the timeframe we've set out that we'll have any problems getting money out of the country," Smith said.

"The fundamentals and demographics in Nigeria, in terms of population, in terms of infrastructure deficits, all offer huge opportunity and the availability of high returns."

Pecora is a privately-owned firm and does not disclose its assets under management or previous performance, he said.

Smith said areas of possible investment included agriculture, telecommunications and transport as the fund hopes to take advantage of the huge demand for improved infrastructure in a country of around 190 million people.

The Nigerian fund will be based in the Cayman Islands and hopes to attract investment from the U.S., Asia and Europe. (Editing by Richard Balmforth)

http://www.reuters.com/article/nigeria-funds-idUSL8N1962NB

Time really to cure the Dutch Disease. Let the people of SS allow criminals to destroy their lands

Go do just that and stop killing for oil
Avenger,s is bringing the best out of yoruba people









long live

Even if they give this man (Buhari) $10 billion, e go use everything travel finish, Nigeria is doomed under his watch....Get well soon my lovely president

Another super story again!!!

who want put salt in a runing water.this is super story.....mamamadu bu gari!

Let the pipeline bombing continue while the rest of Nigeria diversify and move away from the oyel disease; guess who will be laughing last and who won't be. LOL.

QuotaSystem:


First of all, nobody is giving him money. The fund will raise finance for infrastructural projects that will be directly administered by investors.

Second of all, and ironically, this welcome development from the U.S. firm is a fruit of his various travels to seek foreign direct investment.

Comprehend before you criticize so you don't end up embarrassing yourself.

You are lagging behind grammatically bro, do you even know the meaning of "even
"

QuotaSystem:


You can only fool yourself. The use of 'even' in your statement implied that you were under the assumption that money would be handed to Buhari, which is why you suggested he would be unable to manage it.

Next time try to comprehend to avoid releasing brain farts.

Why would you assume that I was assuming the money would be given in cash to Buhari when it was clearly stated in the write up that the money is meant for Nigerian infrastructure projects? Your Argumentum ad hominem vividly convinced me that you are mentally unfavored....And please, enough of the quoting

The enemies of this country who want a total economic collapse will be put to shame!

This is such a bad time to be a Buharist, you must search the entire universe with a candle for any news to project this administration in a positive light,

BUT IT IS PATHETIC when you portray 2 billion dollar loan with AS MUCH AS 25% ANNUAL INTEREST RATE OVER A 7 YEAR TENURE as a remedy to the Niger delta crisis.

Do you ever think of the impact of such a debt burden?

PARIS CLUB COMES TO MIND!