Home Investment Nigeria’s sovereign wealth grows fund under investment to $1.9bn

Nigeria’s sovereign wealth grows fund under investment to $1.9bn

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The Nigeria Sovereign Investment Authority has grown its assets under management to $1.9bn (N617.69bn).

The Managing Director and Chief Executive Officer, NSIA, Mr Uche Orji, said that as of the end of 2018, the NSIA had assets under management of $1.9bn (N617.69bn), Punch Newspaper noted.

NSIA’s assets under management were N533.88bn in 2017, N420.93bn in 2016, N213.67bn in 2015 and N177bn in 2014. Orji, at an interactive session with journalists in Lagos on Saturday, explained that in addition to its core funds, the NSIA managed third-party funds, including the Presidential Infrastructure Development Fund.

Orji said from 2012 to 2018, the NSIA reported six straight years of profitability in all its funds with core profits (excluding foreign exchange translation gains) of N28.45bn ($87.5m) for 2018. He put the profit of the authority as of the end of 2018 at N46.50bn, compared to the N22.55bn recorded in 2017.

He said, “As the authority is shifting focus towards infrastructure and direct investments in Nigeria, returns will incubate longer and as a consequence, cash available for market-driven investments will decline. Despite this reality, total profits increased from N22.55bn in 2017 to N46.50bn (including FX translation gains) in 2018.”

He added, “Breakdown of returns in 2018 by funds is as follows: Stabilisation Fund (11.50 per cent); Future Generations Fund (3.30 per cent); Nigeria Infrastructure Fund (13.80 per cent). These against our benchmark of two per cent; six per cent and three to five per cent respectively.”

The NSIA was created by an Act of the National Assembly, Nigeria Sovereign Investment Authority (Establishment) Act 2011, and signed into law by the President on May 26, 2011.

The Federal Government owns 45.8 per cent of the agency; state government, 36.2 per cent; local government owns 17.8 per cent while the Federal Capital Territory owns 0.16 per cent.

The first board was inaugurated on October 9, 2012, while the authority commenced investment operations in the third quarter of 2013 with seed funding of $1bn.

It received $500m additional capital contribution between 2016 and 2017. The operations of the NSIA are anchored on a three-fold mandate, namely building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure and providing stabilisation support in times of economic stress.

Source: NIPC

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