Nigeria Sovereign Investment Authority set to increase investment in infrastructure

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The Nigeria Sovereign Investment Authority (NSIA) has announced its plans to deploy more capital towards developing infrastructure in the country.

The NSIA, which is the manager of Nigeria’s sovereign wealth fund, disclosed the news in its audited financial results for the 2018 financial year.

The NSIA recorded strong performance in a year when many international markets under-performed and the global economy experienced a moderate pace of expansion.

The Authority’s investment strategy proved robust with headline numbers maintaining a favourable trajectory across the three funds – Stabilisation Fund, Future Generations Fund and Nigeria Infrastructure Fund. This was achieved in spite of concerns over international trade flows, slow growth in key economic indicators and increased volatility across financial markets.

The results also showed that the Authority’s total comprehensive income (including the impact of foreign exchange gains) stood at 44.34 billion naira, higher than the 27.93 billion naira recorded the previous year.

On the other hand, its total comprehensive income, excluding the impact of foreign exchange gains, in the year under review, was 26.29 billion naira, as against the 26.28 billion naira recorded the previous year. In addition, total assets recorded a growth of 16 percent, to 617.70 billion naira at year end, up from 533.88 billion naira recorded the previous year.

NSIA disclosed that in the previous year, it raised its focus on domestic infrastructure projects specifically in agriculture, healthcare, and infrastructure enabling financial institutions.

For instance, in healthcare, the NSIA reached financial close on three healthcare projects including a Cancer Centre at Lagos University Teaching Hospital (LUTH) and Advanced Diagnostic Centres at Federal Medical Centre Umuahia (FMCU) and Aminu Kano Teaching Hospital (AKTH).

The NSIA also disclosed that under the Presidential Fertiliser Initiative, it increased output with approximately 12 million bags of fertiliser produced to date with a total of 18 blending plants participating.

The authority revealed that “the Presidential Infrastructure Development Fund (PIDF): Received $650 million from NEC and commenced capital deployment across three of the major road projects under PIDF including second Niger Bridge, Lagos – Ibadan Expressway and Abuja-Zaria-Kaduna-Kano Road”.

The report said “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”.

The authority said “we expect that our strategy will continue to deliver positive returns. The deployment of the Presidential Infrastructure Development Fund will play a key part of our infrastructure investment strategy for the year”.


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