The Governor, Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, yesterday described public-private partnership (PPP) as the preferred model for infrastructure financing in West Africa.
The CBN governor said this in a keynote address presented at a conference titled: “Financing Infrastructure for Sustainable Development in West Africa,” organised by the West African Institute for Financial and Economic Management (WAIFEM) in Lagos.
According to Sanusi, PPPs had resulted to innovative private funds to infrastructure.
“At their best, they ease budget constraints and raise efficiency by leveraging on private sector management, expertise and innovation. PPP has not been fully embraced within the region, even though some governments within the region have increasingly used them for financing infrastructure,” he explained.
He however noted that among the innovative financing tools in the region, the use of long term sovereign bonds had been successful in raising capital for large scale infrastructure projects in Brazil and other emerging markets.
Speaking on the use of Diaspora bonds for infrastructure financing, Sanusi said: “Diaspora bonds are an alternative had been used as an alternative financing instrument under consideration. These are bonds issued by a government to nationals residing abroad to tap their savings for the purpose of infrastructure development in the home country.”
Meanwhile, the central bank yesterday reiterated its directive to commercial banks and other financial institutions under its supervision to always forward all Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs) to only the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU).
The CBN, in a circular posted on its website yesterday expressed concern that some institutions still sent such reports to its office.
“It has been observed that despite our circulars and letters on the above subject which require financial institutions to forward all suspicious Transaction Reports (STRs) to only the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU), some institutions still forward STRs and Currency Transaction Reports (CTRs) to the CBN.
In view of the provisions of sections 6 and 10 of the Money Laundering (Prohibition) Act, 2011 (as amended) which requires all financial institutions to file STRs and CTRs to the EFCC/NFIU, the CBN wishes to reiterate that CTRs and STRs should be forwarded to the NFIU and EFCC,” it said.