NEC Approves Additional $250m Investment For NSIA

A file photo of Vice President Yemi Osinbajo.


Having received a presentation of the Nigeria Sovereign Investment Authority (NSIA) business update, and outlook, the National Economic Council on Thursday resolved to invest an additional $250 million into the NSIA, the country’s sovereign wealth fund.

The resolution was among other decisions taken at the 99th meeting of the council chaired by Vice President Yemi Osinbajo, SAN, in Abuja.

NEC is composed of the 36 State Governors, CBN Governor, the FCT Minister and other Federal Government representatives.

In his presentation to NEC, the NSIA Managing Director, Mr. Uche Orji said the agency made a profit before tax of N42,036,469 while NSIA and its subsidiaries made a profit before tax of N46,185,074.

According to him, “the total comprehensive income by the year ending 31st December 2018 made by the NSIA Group amount to N44,337,108, while the amount made by the NSIA stood at N41,827,853.

“…irrespective of volatility in the market due to the US/China trade disputes and Brexit, the Group made a total of N24 billion in total comprehensive income in the first 6 months of the year.”

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The NSIA had earlier told the council that it intends to “deploy Capital into the three road projects under the Presidential Infrastructure Development Fund – to complete the Second Niger Bridge, Abuja – Kano highway and Lagos – Ibadan Expressway as well as the Mambilla Power Project.

“That the NSIA intends to create a number of co-investment funds, in the area of Healthcare, Agriculture and Gas Projects.

“These projects worth N2.5 trillion, will be implemented under a business model, that includes the payment of reasonable service charges (e.g. tolling of roads, electricity tariffs etc) after the projects have been fully developed.”

Besides the additional $250 million, NEC also resolved that the “Governor of Kaduna State should chair a NEC Committee to consider how a portion of Pension Funds can also be leveraged into an investment for the NSIA with possible involvement of PENCOM.

“The Committee will include the Finance Minister, CBN Governor and the NSIA MD.”

On the presentation by the Minister of Mines and Steel Development, Mr Olamilekan Adegbite on the development of the solid minerals sector, the Council resolved that “there should be a collaboration between the Federal Ministry of Mines and Steel Development and the State Governments on environmental issues and concerns in the States.”

Regarding community relationships with the miners, it was agreed that there should be a full-time engagement of the communities to avoid the mistakes made in the oil and gas sector.

Council also resolved that the Governor of Ekiti State and Chairman, Nigeria Governor’s Forum (NGF) should constitute an Ad-hoc Committee involving Governors to engage with the Federal Ministry of Mines and Steel Development to find ways of addressing all the issues involved towards a beneficial development of the solid mineral sector.

On updates involving the Excess Crude Account (ECA), Stabilization Account and the Natural Resources Development Fund Account, the Accountant General of the Federation told Council that “the Excess Crude Account (ECA) balance as at 20th November 2019 stood at 324,539,031.51, while the Stabilization Account balance as at 20th November 2019 was N29, 480, 483, 393.33, and Natural Resources Development Fund Account balance as at 20th November 2019 stood at N 79, 751, 649,521.54.

Orji Re-Appointed NSIA MD, As Law School Gets New DG

File photo: R-L Acting President Yemi Osinbajo, Minister of Finance, Mrs Kemi Adeosun, NSIA Chairman, Mr Jide Zeithin and NSIA MD/CEO, Uche Orji, during the inauguration of Board of Nigerian Sovereign Investment Authority (NSIA) at the State House in Abuja.

President Muhammadu Buhari has re-appointed Mr Uchechi Orji as the Managing Director of the Nigeria Sovereign Investment Authority (NSIA).

The appointment was contained in a statement issued on Thursday by Special Adviser to the President on Media and Publicity, Mr Femi Adesina.

Orji was first appointed in October 2012 for an initial term of five years which is renewable for another term of five years.

“Under his leadership, the NSIA has made remarkable strides, and its assets now stand at over $2 billion, which is invested in Nigerian infrastructure, economic stabilisation, and future generation funds.

“In line with Section 16(2) of the NSIA Act, the National Economic Council had in July, this year, endorsed the renewal of Mr Orji’s appointment, given his performance in the first term,” the statement said.

Similarly, President Buhari approved the nomination of Professor Isa Hayatu Chiroma as the Director General of the Nigerian Law School.

Professor Chiroma will succeed Mr Olanrewaju Onadeko, who is due for retirement.

Chiroma who hails from Adamawa State is a Professor of Law, and currently the Deputy Director in charge of the Yola Campus of the Nigerian Law School.

5th Africa CEO Forum To Kickoff March 20 In Geneva

5th Africa CEO Forum To Kickoff March 20 In GenevaHaving cemented its status as the foremost business personalities meeting dedicated to the development of the African private sector, the Africa CEO Forum is set to kick off its 5th edition, themed: “re-thinking Africa’s business model”.

The 2017 edition, set to take place in Geneva, would focus on how to succeed in this new economic cycle on the continent.

Slated to hold between March 20 and 21, the programme would bring together more than 1000 personalities, key decision makers in industry, finance and politics from the African continent and around the globe.

The Africa CEO forum 2017 would open the debate with the economic boom of the 2000s, the context of economic growth in Africa and the critical decisions that must be taken to reach rapid and sustainable growth.

Other themes to be discussed include: Unleashing innovation and the entrepreneurial potential of youth and women, making Africa more attractive for international investors, turning African stock exchanges into competitive powerhouses and creating the next generation of African exporters.

Find out more about the programme

The forum would also offer 20 sessions for debate and reflection, allowing participants to hit strategic topics for driving African corporate growth including: digital transformation, fintech, agri-business, private equity, emerging African champions, electricity and innovation.

Some of the African and international personalities slated to take part in the discussion and debate include:

President, African Development Bank, Akinwumi Adesina, CEO Unilever, Paul Polman, President, Mo Ibrahim Foundation, Mo Ibrahim, CEO, OTMT Investments, Naguib Sawiris, Chairperson, MTN, Phuthuma Nhleko, Co-Founder and Group Executive Director, Sahara Group, Tonye Cole, CEO, United Capital, Oluwatoyin Sanni, Chairperson, Firstbank, Ibukun Awosika, CEO, Mohammed Enterprises, Mohammed Dewji, CEO, Africa and Middle East, Orange, Bruno Mettling, CEO, MSC, Diego Aponte, CEO, Afreximbank, Benedict Oramah, CEO, Rougier, Marie-Yvonne Charlemagne, CEO, Stanbic IBTC Holdings, Sola David-Borha, CEO, Uchumi Supermarkets, Julius Kipng’etich, CEO, Cevital, Issad Rebrab, CEO, Casablanca Finance City Authority, Saïd Ibrahimi, CEO, NSIA, Jean Kacou Diagou.

For more information, visit the African CEO Forum website.

Federal Government To Invest $286mn In Fertiliser Project

nsiaThe Nigerian Government will this week begin the implementation of a fertilizer project expected to enable the country conserve its foreign exchange by about 1.5 billion dollars in the next three years.

Planned through the Nigerian Sovereign Investment Authority (NSIA), over 286.4 million dollars or 87.2 billion Naira is to be invested for the blending of one million metric tonnes of fertiliser.

The blueprint consists of future generation fund, infrastructure fund, and fiscal stabilisation fund.

The NSIA had allocated 20 per cent of some proceeds to the stabilisation fund while 40 per cent has been set aside for the future generation fund and another 40 per cent for the infrastructure fund.

FG Begins Verification Of Monthly Budget Support Facility

Yemi Osinbajo, NEC, Budget Support Facility, VerificationThe Federal Government has commenced the verification of its monthly Budget Support Facility to the states.

The importance of the exercise is to ensure that benefiting state governments comply with the mutually agreed Fiscal Sustainability Plan prescribed by the National Economic Council (NEC).

The resolution was reached at the first NEC meeting in 2017, presided over by Vice President Yemi Osinbajo on Thursday at the Presidential Villa in Abuja, Nigeria’s capital.

The Minister of Finance, Mrs Kemi Adeosun, said that eight accounting firms have been appointed and had already begun the audit process.

She also told the council that the balance in excess crude account stands at $2,458,382,844.03 as at February 15, 2017.

The minister hinted that the National Sovereign Investment Authority (NSIA) plans to increase domestic infrastructure investment in 2017, as there are compelling opportunities in the environment.

She explained that the focus would be on social infrastructure, including affordable housing and healthcare through the development of specialist hospitals and to this end, the council has decided to inject a fresh $250 million into the Sovereign Wealth Fund sourced from the excess crude account.

On agriculture, the council was informed of the massive wheat production in Jigawa, Kano, Kebbi and Zamfara states among others.

The State Governors at the meeting, however, appealed to the Federal Government to make plans for the purchase of excess wheat to ensure price stability and sustainable production.

The council subsequently agreed to discuss and make adequate buy-back arrangements in order to support price stability.

After a brief presentation on foreign exchange policy options by the Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, members of the council generally expressed concern over the current situation of the exchange rate.

They called for an urgent review of the current policy, especially the gap between interbank and the parallel market rates.

In his response, Mr Emefiele sued for patience and understanding, assuring the council that the situation was being closely managed.

NSIA Releases 2015 Financial Results

NSIATotal income for the Nigeria Sovereign Investment Authority (NSIA) increased to 26.3 billion Naira in 2015, representing a growth of 67%.

Investment income is said to have also risen to 47%.

Addressing newsmen in Abuja, the Managing Director of the Nigeria Sovereign Investment Authority, Mr Uche Orji says 250-million-dollar additional capital was approved to the authority.

According to him, 40% of the fund will be channelled to its infrastructure fund, another 40% into its future generations fund and 20% of the funds used as it’s stabilisation fund.


Investment In Nigeria’s SWF To Commence In March 2013

The Ministry of Finance has announced that investments under the Sovereign Wealth Fund (SWF) will commence in March 2013.

The Ministry in a statement on Thursday maintained that the fund is making progress towards becoming fully operational as the strategy document which will guide its operations is ready.

This is coming two months after the inauguration of the fund by President Goodluck Jonathan.

The statement adds that the strategy document was ratified by the board of the Nigeria Sovereign Investment Authority (NSIA) led by Mr. Mahey Rasheed to ensure that the blue print is ready and on time.

It added that efforts to hire key personnel and acquire a functional office has reached an advanced stage.

The Coordinating Minister for the economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, noted that “The country is poised to benefit significantly if the current momentum on the fund is maintained.”

The Managing Director of NSIA, Mr Uche Orji, also explained that in seeking the best investments for Nigeria, the NSIA will not limit itself but will search for the best deals wherever they can be found in the world.

“There are no geographical restrictions or product restrictions for the Future Generation and Fiscal Stabilization Fund, and we expect to invest across the full spectrum of products (equities, fixed income, alternative assets, etc.), in accordance with our five year rolling plan, that will provide a superior risk adjusted returns for the future generations of Nigerians.”