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).
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.
The NSIA also focuses on infrastructure investments in key sectors of the Nigerian economy, including agriculture, healthcare, power and toll roads implemented through Special Purpose Vehicles.
Speaking on the Nigeria Infrastructure Fund, Orji explained that the NIF was being implemented through three key pillars, which are direct investment, co-investments and investment/creation of enabling financial institutions, with the focus being on agriculture, roads, power, gas industrialisation and healthcare.
NSIA said under its direct investment strategy of the NIF, $10m was invested in the privatisation of the Nigeria Commodity Exchange.
It invested another $20m in the development of a cardiovascular diagnostic and treatment centre in the Lagos University Teaching Hospital in partnership with LUTH and Abraaj.
Aiming to improve the quality of education for Nigerian students, the NSIA said it invested $5m in Bridge Academies.
Under its co-investment strategy, it established the Gas Industrialisation Fund to invest in gas industrialisation projects with a view to stimulating the economy.
The firm stated that it participated in the $650m Presidential Infrastructure Development Fund by investing in four strategic infrastructure and power projects while $10m was invested in the $100m fund for agricultural finance in Nigeria, a project done in partnership with the German Development Bank, KfW, and the Ministry of Agriculture.
The NSIA also invested $25m in a $200m UFF Agriculture Fund, a Nigerian agricultural funding partnership with Old Mutual/UFF of South Africa.
As part of its creation of institutions’ strategy, the NSIA collaborated with the Federal Ministry of Finance to inaugurate the Nigeria Mortgage Refinancing Company to lower costs and improve access to mortgages.
It also inaugurated the Nigeria Infrastructure Credit Enhancement Facility in collaboration with GuarantCo and PIDG.
The firm said it worked with the Ministry of Finance to create the Development Bank of Nigeria.
It disclosed that it participated in the $129.3m Presidential Fertiliser Initiative aimed at blending 500,000 metric tonnes of NPK fertiliser.