For a better future . . . Nigeria adds $550 million to Sovereign Wealth Fund

Posted by News Express | 10 February 2014 | 4,191 times

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The Nigerian Government has added an additional $550 million to the country’s sovereign wealth fund managed by the Nigerian Sovereign Investment Authority (NSIA).

This represents an increase of over 50% to the $1 billion funding which the NSIA got at inception.

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, made the announcement this afternoon at a media briefing in Abuja. Mr. Uche Orji, MD/CEO of NSIA, also spoke at the event.

“This is evidence that the investment which the country is making in the NSIA is increasing and the benefits of this investment will bear good fruit for the country. There is still work to be done but we are on the right track,” said the minister. 

The additional funds were derived from the $1 billion Eurobond which the country successfully floated last year, proceeds of which were set aside for financing power infrastructure.

$200 million out of the $550m for the NSIA will go into the Infrastructural Fund of the NSIA to finance gas to power investments with the private sector. The objective is to generate catalytic funding for gas to power infrastructure which will leverage on available funds to boost the development of the power sector and improvement of power supply.

Specifically, an agreement has been reached that the private sector partners will contribute an additional two dollars for every dollar invested by NSIA. This means that the $200 million will generate at least $400 million more in additional investment capital.

The balance of $350 million will go into a liquidity facility which the Nigerian Bulk Electricity Trading Company (NBET) will manage on behalf of the Federal Government to boost investors’ confidence in the power sector reforms.

Orji provided an overview of the investment initiatives of NSIA in Power, Healthcare, Transportation, Real Estate and Mortgage Finance, stressing that the NSIA is determined to do justice to its mandate by investing well and making good returns to the country.

•Photo shows Okonjo-Iweala, who announced the additional funding today in Abuja.

Source: News Express

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