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Tag: NSIA

  • NSIA may lose assets to foreign litigants

    NSIA may lose assets to foreign litigants

    Nigerian Sovereign Investment Authority (NSIA) has raised the alarm that it could lose some of the assets it is managing to foreign interests that have taken the federal government to court in the United Kingdom (UK) and the United States of America (USA).

    According to the NSIA, “the NSIA is concerned that there are FGN cases that could adversely affect the profitability of NSIA.  For example, there was an arbitration proceedings in the UK where judgment was given against the Minister of Interior and the Attorney General of Federation.”

    The federal government agencies, it was revealed, “having failed to meet up their obligations, compelled the plaintiffs to enroll the judgment in the District Court of Columbia USA seeking to make discoveries of the asset of NSIA and other government agencies in the custody of JP Morgan. This case is ongoing.”

    Addressing members of the House of Representatives Committee on Finance, the NSIA Managing Director/CEO Mr. Uche Orji told the legislators that the NSIA is now faced with the challenge of getting more funds.

    Uche Orji expressed “the desire to have the support of all Nigerians for the NSIA to earn sustained funding to achieve its statutory mandate.”

    He stated the NSIA objective to judiciously manage seed capital as given to it and affirmed the transparent nature of NSIA activities.

    He advocated for the support of the House in passing the National Tolling Policy.

    In his response, the Chairman House Committee on Finance, Jibrin Adulmumuni, expressed his committees’ maximum support for NSIA.

    He said members of the committee were “impressed with the NSIA’s level of efficiency and responsiveness in responding to the committees demand.”

    The legislator then promised to mobilise his colleagues in the House to find a lasting solution to the legal angle of NSIA.

    Adulmumuni lamented that “the dwindling oil prices could lead to high deficit making the NSIA even more necessary for situation like this.”

  • Fed Govt mulls $5b Sovereign Wealth Fund

    Fed Govt mulls $5b Sovereign Wealth Fund

    The Federal Government is taking steps to increase the investible funds available to the Nigerian Sovereign Investment Agency (NSIA) from its current $1.5billion to about $5billion, the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, has said.

    Mrs. Okonjo-Iweala, who spoke in Washington DC at a specialised meeting with the Business Council for International Understanding, said Nigeria remains a converging point for investors, being the largest economy in Africa and  26th largest in the world. Aside that, she added that Nigeria’s economy is now highly diversified, especially after the rebasing a few months ago.

    She said government is in the process of opening up other sectors of the economy to shift emphasis away from oil. She however noted that oil and gas will still continue to play important roles in driving the fortunes of the economy. According to her, the ultimate aim of the government is a push towards making it a non-oil based, adding that the shift could be realised, as there are so many sectors that are available to be exploited.

    Mrs Okonjo-Iweala identified sectors yearning for investment to include services, which is contributing 51per cent to the Gross Domestic Product (GDP); manufacturing and industry, 26 per cent;  agriculture -22 per cent and telecommunication, which she said has grown from 0.8 to eight per cent in contributions to the GDP, among several other sector. She added that the development is pointer to the fact that government’s projections are both attainable and realisable. She said one interesting aspect of the economy is that it has consistently grown between six and seven per cent, which she stressed is a selling point, in addition to available human resources.

    Dwelling on security, she said the scare created by the Boko Haram insurgency is already being contained, pointing out that the army has done excellently well in addressing the set-backs the insurgency threatened to create. “As far as security is concerned, we have made some gains, and we are putting together some kind of building blocks to address it,” she said.

    The minister said the government is also in the process of addressing the challenge of finance, with the establishment, in a few months time, of the Development Bank of Nigeria which is expected to provide long term finance for between seven and eight years and beyond..

    Speaking earlier, NSIA Managing Director, Uche Orji, said the agency is on track in its investment projections, saying it made a $100million in Seven Energy to help in providing a pipeline to deliver gas to the Calabar National Integrated Power Project (NIPP).

  • NSIA boss to speak at Banking Sector Report launch

    NSIA boss to speak at Banking Sector Report launch

    Managing Director and Chief Executive Officer of the Nigerian Sovereign Investment Authority (NSIA), Uche Orji, will deliver the keynote address at the launch of the Afrinvest 2014 Nigerian Banking Sector Report on September nineth.

    The event would hold at Oriental Hotel, Victoria Island, Lagos, and will be attended by key stakeholders in the nation’s financial services industry, from both the public and private sector.

    Godwin Emefiele, Governor of the Central Bank of Nigeria, is the Special Guest of Honour. Titled ‘Navigating Growth in a Challenging Environment,’ the 2014 Report, according to Ike Chioke, Managing Director of Afrinvest, “ will x-ray the current conditions of the Nigerian banking landscape within the context of the domestic and global economy.

    “We are excited that Uche Orji, MD/CEO of the NSIA, will be the keynote speaker at the launch; guests can have a better appreciation of the key sectors that the agency is focused on with respect to its remit to catalyse the transformation of the economy, and how the objectives of the NSIA interlink with those of the CBN and the banking industry”, Chioke said.

  • NBET, NSIA sign agreement on $350m Eurobond Funds’ management

    NBET, NSIA sign agreement on $350m Eurobond Funds’ management

    The Nigerian Bulk Electricity Trading Plc (NBET) and the Nigeria Sovereign Investment Authority (NSIA) yesterday signed a Funds Management Agreement for the $350million allocated to NBET from the $1billion Eurobond issued by the Federal Government in July, 2013.

    The Managing Director/CEO, NBET, Rumundaka Wonodi, said NBET is pleased with the arrangement that “allows a competent fund manager like NSIA,  to manage NBET’s Eurobond facility in a manner that yields the required returns, and  yet allows the funds to be readily available for any required Bulk Traderinterventions.

    “With this arrangement, NBET can focus on developing the electricity market and catalysing the much needed investments in the power sector.”

    Also speaking at the signing ceremony, the Managing Director and Chief Executive Officer of NSIA,  Uche Orji, said the Sovereign Wealth Management Agency is pleased to enter into this asset management arrangement with NBET.

    “It is our aim to bring our proven capabilities in profitable asset management to bear for the benefit of NBET and the Nigerian power sector in general,” he said.

  • NSIA, Russian Fund join IFSWF

    NSIA, Russian Fund join IFSWF

    The Board of the International Forum of Sovereign Wealth Funds (IFSWF) has approved the applications for IFSWF membership of Nigeria Sovereign Investment Authority (NSIA) and the Russian Direct Investment Fund (RDIF).

    Mr. Bader M. Al Sa’ad, IFSWF Chair and Managing Director of Kuwait Investment Authority, welcomed the new members and states:

    “It is a great pleasure to welcome two new members to our global network of sovereign funds. The IFSWF Board notes the willingness of the new members to endorse, on a voluntary basis, the Santiago Principles. We look forward to collaborating with the teams led by Mr. Uche Orji, CEO and Managing Director of NSIA and Mr. Kirill Dmitriev, CEO of RDIF.”

    With these two new members, the IFSWF now has 28 members.

    The IFSWF, a voluntary group of Sovereign Wealth Funds (SWFs), was established by the International Working Group of Sovereign Wealth Funds in April 2009.

    Among its major objectives is the promotion of an understanding of the Santiago Principles – a set of 24 guidelines for the operation of SWFs.

    NSIA will be inducted at the next IFSWF annual meeting in Doha slated for between November 19 and 20 where it will also sign the membership agreement and formal declaration of IFSWF membership.

  • NSIA, GuarantCo partner to bridge infrastructure gap

    NSIA, GuarantCo partner to bridge infrastructure gap

    The Nigeria Sovereign Investment Authority (NSIA) and GuarantCo, a development finance fund are partnering to explore the potential creation of a Nigerian Credit Enhancement Facility (NCEF).

    The project is expected to attract a pool of capital for which safety is paramount such as pension funds, insurance firms and Sovereign Wealth Funds (SWF).

    It said a key barrier preventing these forms of capital from investing in infrastructure projects is the absence of an appropriate credit enhancement mechanism that helps bring infrastructure projects up to a credit quality that represents appropriate investments for their stakeholders.

    “To address this gap, GuarantCo is partnering with the NSIA to explore the potential for establishing a Nigerian Credit Enhancement Facility that would provide credit enhancement for critical infrastructure projects by improving their credit ratings to investment grade. Such a vehicle could also potentially attract international capital.

    NSIA and GuarantCo see this partnership as a potential catalyst for unlocking long-term patient capital, typically required by infrastructure projects to be commercially successful. It is expected to have positive effects on the Nigerian economy given the strong correlation between critical infrastructure and accelerated economic growth,” NSIA statement read in part.

    NSIAManaging Director and CEO, Mr. Uche Orji, said enhaning the infrastructure of the country is one of its statutory duties. He said: “One of the statutory mandates of the NSIA is the enhancement of Nigeria’s infrastructure and in fulfilling this mandate we are desirous of establishing the necessary institutional frameworks and sustainable enablers that will attract long term capital necessary for this purpose. We are excited about the potential role this partnership can play in revolutionising the extant model of infrastructure development in Nigeria; now and into the future.”

    Head, GuarantCo at FMFM (Frontier Markets Fund Managers) Mr. Chris Vermont, said his firm shares the vsion of NSIA.  “GuarantCo shares NSIA’s vision for mobilising new sources of finance for infrastructure through creating a Nigerian Credit Enhancement Facility. “We are proud to be partnering NSIA as they map out a prudent but ambitious pathway for Nigeria. We hope our experience of best practice across many markets can be combined with NSIA’s local expertise in the service of the country,” he said.

  • NAICOM okays four insurers’ 2013 accounts

    NAICOM okays four insurers’ 2013 accounts

    Four insurance firms have had their 2013 financial accounts approved by the National Insurance Commission (NAICOM) in the first quarter of 2014 as required by law.

    The four firms are Mansard Insurance Plc, Custodian General Insurance, Custodian Life Assurance Ltd and Cornerstone Insurance Plc.

    The commission disclosed this in a circular titled: “Submission Status of 2013 Financial Statements of Insurance Companies as at April 23, 2014.

    The early approvals is a departure from the past where insurers find it difficult to submit their true financials and get approval from the regulator as and when due.

    While Mansard Assurance Plc has already done its AGM, the other three are expected to do theirs soon.

    Meanwhile, the accounts of Zenith Life Insurance Limited; NSIA Insurance Limited; FBN Life Assurance Limited; Wapic Insurances Plc; Zenith Insurance Company Limited and Wapic Life Assurances are being reviewed.

  • NSIA realises N505m income in 15 months

    NSIA realises N505m income in 15 months

    Nigeria Sovereign Investment Authority (NSIA) realised N505.7million in 15 months of its operation ending December 31, 2013.

    The abridged statement of the financial position of the investment authority for the review period, showed that it received N1.96billion income, comprising N1.566billion, Total operating income and N495.02million, Non –operating income in the review period, while Total operating and administrative expenses, and Investment and custodian fees, gulped N1.414bilion and N21.905milion respectively.

    The NSIA’s financial outlay, indicated that N155.25billion came from Contribution by government, while N525.156million was from Retained earnings.

    In the review period, NSIA’s total Assests stood at N157. 595 billion, comprising Cash and cash equivalents, amounting N111.895 billion, Investment securities yielded N45.114 billion, property and equipment N246 million, Other assests, N290.5 million, while Advances and intangible assets amounted to N28 million and N19.8 million respectively.

    The total liabilities of the authority in the review period stood at N1.84 billion, comprising, borrowing and liabilities of N1.4 billion and N439.7 million, respeectively

  • Second Niger Bridge won’t be abandoned, says Jonathan

    Second Niger Bridge won’t be abandoned, says Jonathan

    President Goodluck Jonathan yesterday performed the ground-breaking for the N117 billion Second Niger Bridge in Onitsha, Anambra State.

    President Jonathan said the project would be handled by Messrs Julius Berger-NSIA Consortium.

    He said it was programmed in compliance with the Infrastructure Concession and Regulatory Commission Act and the Public Procurement Act.

    The President assured that the bridge would never be abandoned but would be completed on time.

    He said: “Federal Government is executing this project under a Public Private Partnership (PPP) arrangement for a concession period of 25 years, through a ‘Design, Build, Finance, Operate and Transfer (DBFOT)’ model.

    “We have confidence in the capacity and competence of the concessionaire, Messrs Julius Berger-NSIA Consortium, to deliver this project for N117 billion.”

    He said to ensure the project was delivered on schedule, Federal Government would contribute 25 per cent, about N30 billion.

    Recalling that the project was part of his electoral promises in 2011, President Jonathan hailed Anambra State Governor Peter Obi, Delta State Governor Emmanuel Uduaghan and the indigenes for their patience, understanding, support and cooperation.

    “As we commemorate our centenary, I believe this bridge will deepen national integration and enhance economic and social interaction in the Southeast and other parts of the country’’, he said, adding:

    “As part of our administration’s Transformation Agenda in the road sector, we have set out to build two important bridges across the nation’s two great rivers – River Niger and River Benue. These are the Loko-Oweto Bridge linking Nasarawa and Benue states, which is progressing and this second Niger Bridge connecting Anambra and Delta states.

    “The Second Niger Bridge, whose foundation we are laying today, represents a strategic national infrastructure, with great socio-economic prospects for the contiguous states and the country. It is an important economic artery, which will connect the great markets of Onitsha and Aba, as well as the industrial hub of Nnewi and beyond, to the northern and southern parts of the country.

    “On completion, this bridge, which is being built almost 50 years after the existing bridge was opened, will alleviate the pains experienced by travellers, following congestions on the old bridge, particularly at festive periods. It will improve road transportation in the Southeast and reduce travel hours.”

    The event was attended by Governors Obi and Uduaghan. Ebonyi State Governor Martins Elechi and Abia State Governor Theodore Orji were also present.

    Other personalities at the ceremony included Deputy Senate President Ike Ekweremadu, Deputy Speaker of the House of Representatives Emeka Ihedioha, Minister of Works Mike Onolememe and Finance Minister Dr. Ngozi Okonjo-Iweala.

  • Sovereign Wealth Fund $550m richer

    Sovereign Wealth Fund $550m richer

    The Federal Government has added $550 million to the Sovereign Wealth Fund (SWF) managed by the Nigerian Sovereign Investment Authority (NSIA).

    This is in addition to the $1 billion kept in the account at inception.

    The Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, announced the new investment, at a news conference in Abuja. With her was Mr Uche Orji, the MD/CEO of NSIA.

    Mrs Okonjo-Iweala said: “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.”

    The additional funds were derived from the $1 billion Eurobond which the country successfully floated last year.

    The proceeds were set aside for financing power infrastructure.

    Of the $550 million for the NSIA $200m 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.

    He added that the outstanding 15 per cent initially left untouched of the $1 billion SWF has been allocated to the three components of the SWF with the Stabilisation fund now standing at 20 per cent, the Infrastructure fund has been increased to 40 per cent while the Future Generation Fund has been increased to 40 per cent.

    Orji assured that more financial commitments will be made to the infrastructure fund in the first quarter of this year. He said a “specially managed account for the federal government” he said has been created to facilitate this commitment.