How Nigeria’s wealth agency invests its capital — MD

The Nigeria Sovereign Investment Authority (NSIA) invested its $1.5 billion seed capital in the development of key infrastructures to create wealth and grow the economy, Uche Orji , the managing director, has said.

From the initial $1.2 billion capital provided by the Federal Government at inception in 2012, Orji said the only additional monies the agency received were from the present administration in 2015 and 2016.

“We (NSIA) did not receive any other money until the end of 2015 when another $250 million was brought by the current government,” Orji said

“Another $250million was released a few months later (in 2016), bringing the total to $1.5 billion. About $2million earned before taking over the Fund was used to start the company’s operations,” he added.

He said the initial capital was invested in three of its mandate Funds, namely Stabilisation Fund, Future Generations Fund and Nigeria Infrastructure Fund in the ratio 20:40:40 respectively.

The Stabilization Fund, he said, was short-term investments in Treasury bills and money market instruments outside the country.

The Fund, Orji said, is always available for the government to draw from to meet the need to stabilise the economy. He said the government has never drawn from the Fund before.

Also, he said the Future Generations Fund consists of investments in private and public international equity markets aimed at earning long-term returns for the future generations of Nigerians.

For the Nigeria Infrastructure Fund, the NSIA MD said it is solely dedicated to co-develop and invest in infrastructures like toll roads/motorways, power, healthcare, agriculture and more recently gas commercialisation.

Other areas the NSIA deploys the Fund include the development of free trade zones, aviation, water/sewage, gas pipeline, storage facilities, mining, refineries, real estates, ports, railways, communications, and those the agency does not have the technical expertise.

In the last two years, Orji said the NSIA’s investments in infrastructure have grown so rapidly that the company is considering moving from a single entity into a group structure.

He said the board of the company has already approved a five-year development plan, beginning this year, to strengthen its internal processes for sustainable growth and investment.

“A holding company and group structure will accommodate our rapidly expanding and growing investments and operations,

“Suddenly NSIA has grown from not having so many operating groups to having so many operating groups,” Orji said

“So, we have to create a holding company and a group structure. NSIA has so many operating entities now,” he added.

In addition to managing its capital, the NSIA MD said the agency is also managing funds on behalf of the federal government.

Apart from the $650million Presidential Infrastructure Development Fund for the construction of the Lagos-Ibadan road, the Second Niger Bridge and the Abuja-Kano road projects, Orji said the NSIA also built three healthcare facilities.