The Nation Newspaper

Tag: SWF

  • FG adds another $550m To SWF

    FG adds another $550m To SWF

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

    This represents an increase of over 50 per cent 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 on Monday afternoon at a media briefing in Abuja along with Mr. Uche Orji, MD/CEO of NSIA.

    Okonjo-Iweala noted that this shows that the investment which the country is making in the NSIA is increasing and its benefits 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, proceeds of which were set aside for financing power infrastructure.

    $200 million out of the $550 million 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,” she said.

     

  • Fashola, NSIA differ on SWF

    Fashola, NSIA differ on SWF

    Lagos State Governor, Babatunde Fashola has criticised the establishment of the Sovereign Wealth Fund (SWF) under the management of Nigeria Sovereign Investment Authority (NSIA).

    But the Managing Director/Chief Executive Officer of NSIA, Uche Orji, said its creation is to serve as a vehicle to attract Foreign Direct Investment (FDI).

    Fashola, who spoke yesterday when he received members of the NSIA, led by its Chairman, Mahey Rasheed, said rather than saving money, the funds should have been released to the states to develop their infrastructure.

    He said: “As far as this matter is concerned, I have since made my decision known. I disagreed because they are fundamental constitutional issues,” adding that no matter the attractiveness of the concept like NSIA, Nigerians must learn to ask the real questions.

    Orji told The Nation that the NSIA is a legal entity, saying, not everybody is happy with every law, “but when it is passed, we have to implement it.

    He said the SWF ought to have come into existence 30 years ago, arguing that other countries, like Abu Dhabi that caught the vision in the mid 1970s, are the better for it today.

    Orji said he has nothing against the on-going debates about whether Nigeria should continue borrowing, embark on savings, or invest, stressing that “our role is to manage what we have been given.”

    He explained that whether the NSIA deploys the funds internally, or externally, “investment serves as a confident quotient, no matter how small”.

    Earlier, Rasheed said they were in the State House to present the shareholders certificate to the governor and to solicit his support.

    He said the funds belong to all the components of the federation, adding that the objective was to invest and return proceeds of investments to the Federal Government’s coffer.

    He said the act establishing NSIA has since been passed by the National Assembly and signed by President Jonathan.

  • SWF instrumental to fiscal discipline in Nigeria – Jonathan

    SWF instrumental to fiscal discipline in Nigeria – Jonathan

    President Goodluck Jonathan on Thursday insisted that the Sovereign Wealth Fund (SWF) is critical to maintaining fiscal discipline in Nigeria.

    Jonathan, who was represented by Vice President Namadi Sambo, also inaugurated the governing council and board of the Nigeria Sovereign Investment Authority (NSIA) and issued share certificates of contribution to the SWF to the 36 states.

    Issuing the certificates to the federal, state and local government for their contribution to the Fund before the commencement of the National Economic Council (NEC) meeting, the President said the inauguration of the governing council was an indication of the progress made so far in the running of the fund.

    He called on government officials at all levels to ensure that the objectives of Nigeria’s own Fund is achieved through the commitment of their contribution.

    He listed the objectives of the NSIA to include: building a saving base for future generations of Nigeria, enhancing the development of Nigeria’s infrastructure and promoting fiscal stability for the country in times of economic stress.

    He said: “Sovereign Wealth Fund all over the world has been instrumental for the instrument for fiscal discipline and development of the countries in which they exist. Our collective furnishing of the fund is re-enforced by the presentation of certificates of contribution for federal, state and local government and I urge all Nigerians and officials of all levels of government to give their full support to the NSIA to ensure that the objectives are speedily realized for the benefit of all Nigerians.

    “As you all know, these objectives include: building a saving base for future generations of Nigeria, enhancing the development of Nigeria’s infrastructure and promoting fiscal stability for the country in terms of economic strength. I am happy to report that the board and management team of the NSIA has set about implementing robust governance and investment structures towards the achievement of its laudable objectives and the international community is already taking note of their efforts.”

     

     

     

  • FG unveils pension funds managers

    FG unveils pension funds managers

    The Minister of Finance, Dr. Ngozi Okonjo-Iweala, said on Thursday that the Nigeria Sovereign Investment Authority (NSIA) would help to manage the pension funds, to enhance investment in infrastructure in the country.

    Okonjo-Iweala made the remark in Abuja, at the official announcement of the sovereign wealth fund for investment.

    “One of the benefits of having this sovereign wealth fund is not just for the organisations that want to co-invest, but they will also help us work along with our pension funds.

    “They are designing at the moment; a mechanism that would enable us to manage our pension funds, to invest in infrastructure development.

    According to her, it has to be done very carefully, to earn returns.

    “If this is achieved, the nation’s pension funds would be managed in a protected way,” the News Agency of Nigeria quoted the minister as saying at the forum.

    Okonjo-Iweala said the one billion dollars for the Nigeria Sovereign Wealth Fund had been allocated to three key areas of Future Generations, Nigerian Infrastructure and Stabilisation Funds.

    She said that 200 million dollars had been allocated to the stabilisation fund, while 325 million dollars were allocated to infrastructure development and future generations funds, respectively.

    The minister added that the balance of the funds would be decided according to the law.

     

  • Govt mulls funding housing from N60b ‘dormant accounts’

    Govt mulls funding housing from N60b ‘dormant accounts’

    The Federal Government is considering borrowing money from the N60billion “dormant account” among some other options, to fund social housing in the country.

    Other sustainable funding options being considered for funding the project are unclaimed dividends, Sovereign Wealth Fund (SWF) and Pension Fund, according to a document obtained by The Nation.

    Nigeria has a huge housing deficit of 17 million, which grows by two million yearly.

    “Dormant accounts”, according to a letter to President Goodluck Jonathan, “are largely the pool of funds that the corrupt and unrighteous had stacked away until subsequently overcome by death or other incapacities.”

    The letter, which emanated from the Social Housing Committee, said that Pension Funds can also be effectively deployed in mass rental apartments across the nation starting with pilots in each of the six geo-political zones in the country.

    The security for using these funds, according to the Committee, would be tied to a “Rent to Own Contract.”

    According to the proposal to the President, “A ‘Tenant’ is promised a conditional Rent to Own Contract if he does not default in first three years. This conditional contract that is signed in the third year becomes effective in the fifh year at which point all past rents are converted to deposits for owning the flat at a predetermined price.

    At the contract signing in the fifth year, a new condition is given that should the tenant default for a period of three consecutive months there will be a foreclosure with refunds of only a percentage of the payment from the contract period (from the fifth year).”

    The Committee noted that housing delivery generally requires large amount of long-term funds, noting that this has been the singular most common reason past governments would rather shy away from the challenge.

    “No responsible government would do anything that will be tantamount to the abuse of the savings of her workers, directly or indirectly. “It will take great political will and devotion to the greater good of the land to break these strongholds.

    “Our challenge is not in shying away from the funds, but to proffer solutions to the challenge of proper investment of the funds at near zero risk, while possibly growing same. It is within this context that investing in Secure Real Estate development, being a global standard practice is our humble submission,” the Committee said.

    The Federal Government had some months ago partnered with the World Bank to develop a $300million mortgage financing structure that would deliver affordable houses to Nigerians.

  • SWF will hasten infrastructure devt

    SWF will hasten infrastructure devt

    The creation of the Sovereign Wealth Fund (SWF) presents an opportunity for the government to fund infrastructure, the Managing Director, Stanbic IBTC Holdings Plc, Mrs Sola David-Borha, has said.

    Speaking at the Fourth Christopher Kolade Symposium hosted by the Nigerian Leadership Initiative (NLI) in Lagos, she said infrastructure stimulate growth.

    The Federal Government requires N16 trillion to provide infrastructure in the country, she said.

    According to her, the economy is growing but not as fast as expected because of inadequate infrastructure.

    Mrs David-Borha said Nigeria can achieve 30 per cent efficiency by getting the power sector right. “Infrastructure is enabler for growth and the sooner we learn about that the better,” she said.

    She said that corporate governance in the banking system has improved, adding that there is no country with a perfect system.

    The Central Bank of Nigeria (CBN), she said, took bold steps in that direction, adding that more still needs to be done to get better results.

    “Corporate governance practice has improved in the country. Although more work still needs to be done, there has been great improvement,” she said.