NSIA’s assets grow to N617.7 billion

•To invest in gas commercialisation
One of the major investment targets this financial year by the Nigeria Sovereign Investment Authority (NSIA), managers of the nation’s sovereign wealth fund (SWF), is gas commercialisation, which is being given a boost with a 16 per cent growth in net value to over N617.7 billion.

With Nigeria now being commonly referred to more as a gas province than oil, with proven reserves estimated in excess of 199 trillion cubic feet, which remain largely untapped due to dearth of gas gathering infrastructure and paucity of funds, the Federal Government is willing to offer incentives for its gas monetisation drive.

The Managing Director and Chief Executive Officer of NSIA, Mr. Uche Orji, disclosed the intension at a news conference in Abuja, to present the agency’s 2018 audited financial report.

Given that oil and gas requires huge capital outlay, Orji insisted that NSIA is capable of undertaking such an investment, as “The results show strong performance in a year when many international markets underperformed, and the global economy experienced a moderate pace of expansion.”

He added, “Despite concerns over international trade flows, slow growth in key economic indicators and increased volatility across financial markets, the Authority’s investment strategy proved robust with headline numbers maintaining a favourable trajectory across the three funds – The Stabilisation Fund, Future Generations Fund, and Nigeria Infrastructure Fund.”
Besides, he noted that the joint Federal and states Government’s $1.5 billion take-off fund taken from the country’s Excess Crude Account (ECA) in 2012, has appreciated in value with additional $350 million more.

Highlights of NSIA’s activities and performance during the period are as follows: “Total comprehensive income (including the impact of foreign exchange gains) of N44.34 billion (previous year: N27.93 billion). Total comprehensive income (excluding the impact of foreign exchange gains) of N26.29 billion (previous year: N26.28 billion). Total Assets recorded a growth of 16% to N617.70 billion at year end (previous year: N533.88 billion); and Return on Capital Employed (ROCE) on the core funds (in Naira). Stabilisation Fund (100% Funds deployment); 7.2% Future Generations Fund (81% fund deployment); 8.3% Nigeria Infrastructure Fund (17% fund deployment); 7.7% Increased focus on domestic infrastructure projects specifically in agriculture, healthcare, and infrastructure enabling financial institutions.”

On its Healthcare investment, Orji said the NSIA during the period under review reached financial close on three healthcare projects, including a Cancer Centre at the Lagos University Teaching Hospital (LUTH); and Advanced Diagnostic Centres at Federal Medical Centre Umuahia (FMCU); and Aminu Kano Teaching Hospital (AKTH).

“We have commissioned the LUTH Cancer Centre. The facility will soon be fully open for clinical operations,” he revealed.
Commenting on the Agency’s Presidential Fertiliser Initiative, he announced that it increased output with approximately 12 million bags of fertiliser produced to date with a total of 18 blending plants participating.

Similarly, with the Presidential Infrastructure Development Fund (PIDF), which manages the Federal Government’s $650million for some select key priority infrastructure, he said the Agency has commenced capital deployment across three of the major road projects including 2nd Niger Bridge, Lagos – Ibadan Expressway, and the Abuja-Zaria-Kaduna-Kano Road.

Furthermore, Orji revealed that “The joint venture of NSIA and UFF reached financial close on Project Novum, a fully integrated farm located on 3,500 hectares of land in Panda, Nasarawa State. InfraCredit: NSIA having created InfraCredit, attracted other investors to the company and de-recognised it from the book. InfraCredit is poised to transform the infrastructure bond market having facilitated transactions for North South Power and Vitan, new investors in InfraCredit, AfDB, and KfW.

“‘Other key infrastructure projects in the pipeline for 2019 include: Commodities Exchange (NCX): Progress has been made and we are in the process of choosing a strategic partner. Investment in Basic Chemicals with OCP Morocco: Basic Chemical Platform to produce ammonia and other fertilizer products.”