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Published On: Thu, Feb 27th, 2014

NSIA exhausts $1bn allocated fund on infrastructure, others

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By Clem Khena-Ogbena

The Nigeria Sovereign Investment Authority (NSIA) has exhausted the sum of $1billion allocated to it by the Federal Government of Nigeria, through the Central Bank of Nigeria (CBN), in February, 2013.

The managing director and chief executive, NSIA, Mr. Uche Orji, disclosed this yesterday, while briefing reporters on the update of the Authority, in Abuja, adding that $200million, representing 20 percent, out of his figure had been fully invested.

Orji, who also said that NSIA had no more unallocated funds since December last year, stated that $400 million each out the $1billion was allocated to Infrastructure Fund and Future Generation Fund, thus representing 40 percent respectively.

He further indicated that the Authority had been allocated $550 million by the federal government to manage on the latter’s behalf, while $350 million would be managed under the Stabilisation Fund and $250 million under the Nigeria Infrastructure Fund, even as he noted that NSIA was in the process of on-boarding this additional $550 million.

According to the NSIA boss, investment activity regarding the Stabilisation Fund began in October last year, during which the money was allocated to three portfolio managers. He added that the performance was in tandem with the expectation of NSIA in terms of earning a modest positive return.

On Infrastructure, he said that NSIA’s initial focus had been centered only on such areas as Agriculture, Real Estate, Motorways, Power and healthcare, out of about 12 to 13 areas the Authority earlier defined as within the infrastructure sector of the nation’s economy. He, however, said that in order to be able to execute these strategies, NSIA had to incorporate the following subsidiaries: NSIA Motorways Company Ltd, NSIA Power Investment Company Ltd, NSIA Healthcare Investment Company Ltd, and NSIA Real Estate Investment Company Ltd.

Orji stated: “We allocated the $100m Power Sector and have an agreement with a private equity company to match us 2:1 on the equity.

We are still looking at opportunities both for greenfield and secondary investments. We are looking at both Gencos and Discos. There are a lot of opportunities, but frankly, we are not close to announcing any at this stage. If things go well o a couple of things we are looking at, we could announce something soon.

“It should be recalled that we were recently allocated $550 million by the federal government under the power to gas programme. Against this backdrop, we are looking at the gas to power sector as an area of interest under this fund injection.

“We have also recently signed an MoU with AMA-Sinohydro to collaborate on investment opportunities in hydro-electric power plants, multipurpose dam, real estate, transportation infrastructure, among other areas.”

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