With the Nigerian Sovereign Investment Authority (NSIA) seeking further growth through agriculture and the additional asset management, the Nigeria sovereign wealth fund has received an additional $500 million contribution from the current administration, bringing it to stand at $2 billion in September.
The wealth fund which commenced operations in 2012, under NSIA was allocated an initial $1billion in seed capital to invest the savings gained on the difference between the budgeted and actual market prices for oil to earn returns that would benefit future generations of Nigerians, The Nerve Africa reported.
To ensure a long-term investment focus, the wealth fund do not only want to receive cash injections from the government, but also intend to undertake asset management with oil and gas investment under consideration.
Speaking in a recent interview at Kazakhstan’s capital, Astana, NSIA Chief Executive Officer said “the government’s contribution stands at $1.5 billion, with the rest including funds owned by the institution and those managed for several government agencies”.
Following the approval of a 9 member board of the NSIA three months back, the National Economic Council (NEC) has injected $250 million capital into the sovereign wealth fund sourced from the Excess Crude Account (ECA) which has been replaced by Future generation fund, Nigerian infrastructure fund and Stabilization fund with $600 million, $600 million, $300 million respectively .
Orji added that agriculture is prior area of investment and the investment authority, NSIA, plans to rehabilitate another nine fertilizer-blending plants within a year, following the rehabilitation of 11 fertilizer plants as part of the current administration’s initiative and strategy of ensuring increased growth in the country’s agricultural production to reduce the economy dependence on oil which contributes two-third of government revenue.
The revamping of the 11 fertilizer plants has aided the creation of 50,000 jobs, saved the government $139 million in would-be subsidies this year and also produced 6 million bags of fertilizer at 30 percent below market prices.