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NSIA Restructures Portfolio To Focus On Infrastructure

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The Nigerian Sovereign Investment Authority (NSIA), manager of Nigeria’s sovereign wealth funds has announced that it is restructuring portfolios to focus on key infrastructure areas like roads in its 2018 financial year and beyond. It said the aim is to help Nigeria reduce infrastructure deficit in health, roads among others.

This was as the Authority disclosed that in 2017 alone, the NSIA recorded $25 million capital injection into the Nigerian infrastructure projects in roads,  power, health and agriculture under a Public Private Sector arrangement. He said the funds were sourced through InfraCredit, a specialised financial guarantor – providing guarantees to enhance the credit quality of debt instruments backed by eligible projects in Nigeria.

The sum of $5 million was committed to deliver affordable quality primary education to lower-income families, the Authority said in its 2017 financial account.

Meanwhile, NSIA recorded the sum of N27.93 billion as its total comprehensive income (including the impact of foreign exchange gains) for year-end, 2017. The figure is lower than the N149.83 billion posted in the previous year by N121.9 billion.

The total comprehensive income (including the impact of foreign exchange gains) amounted to N26.28 billion, also lower than the preceding year’s amount of N46.24 billion, the agency’s 2017 financial statement of account has shown.

Total assets however recorded a growth of 27 per cent to stand at N533.88 billion at year end, higher than the N420.93 billion it was in 2016. NSIA’s MD and CEO, Uche Orji attributed 68 per cent of the asset growth the National Economic Council (NEC), stating that another $250 million allocated by NEC at the 2016 governing council meeting was received in Q3 2017.

The fundamental components of income rose rose as interest income grew by 106 per cent (from N10.57 billion in 2016 to N21.77 billion in 2017) while investment income also grew by 96 per cent (from N1.33 billion in 2016 to N2.60 billion in 2017).

“The decline of the Net Foreign Gains which accounted for the reduced Net Operating income recorded in 2017 was as a result of Government’s currency management policies which were aimed at stabilising and reflection the Naira’s real value in 2016,” Orji said while addressing journalists at the weekend in Abuja.

He added that the devaluation of the Naira from N196/$1 to N305/$1 resulted in the recognition of significant exchange gains in the Authority’s Naira book. About 80 per cent of the Authority’s Assets Under Management were denominated in

Under its return on investment, details of the financial statement showed Stabilisation Fund of 5.17 per cent; Future Generations Fund: 6.06 per cent; while Nigeria Infrastructure Fund recorded Return on Capital Employed (ROCE) of 3.50 per cent in the year under review. 

Orji said NSIA produced eight million bags of fertiliser with equivalent of two million bags carried over as inventory, with a capital injection of $100 million through its company – NAIC-NPK Ltd under the Presidential Fertiliser Initiative in 2017. He said the organisation also committed $25 million to UFF-NSIA fund sponsored by Old Mutual for an integrated farm in Nassarawa.

NSIA core capital stood $1.5 billion, according to its CEO, with other 3rd party managed funds in 2017 resulting in $511.4 million, comprising of NBET’s $350 million and Debt Management Office’s $100 million – fair value 31 December,  2017.

In its outlook for 2018, NSIA expects the federal government’s Presidential Infrastructure Development Fund (PIDF) to drive 2018 infrastructure investment strategy based on the $650 million voted by National Economic Council to complete selected national road and power infrastructure projects.




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