The federal government has added an additional $550 million to the sovereign wealth fund managed by the Nigerian Sovereign Investment Authority (NSIA), bringing the total money managed under the fund to $1.55 billion.

This represents an increase of over 55 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 yesterday while briefing journalists in Abuja.

“This is evidence that the investment which the country is making in the NSIA is increasing and the benefits of this investment will bear good fruit for the country. There is still work to be done but we are on the right track,” she said.

According to her, 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.

Okonjo-Iweala explained that $200 million out of the $550 million for the NSIA would 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 would  leverage on available funds to boost the development of the power sector and improvement of power supply.

The balance of $350 million would go into a liquidity facility which the Nigerian Bulk Electricity Trading Company (NBET) would  manage on behalf of the federal government to boost investors’ confidence in the power sector reforms.

Managing Director/CEO of NSIA Mr Uche Orji, who also present at the meeting, explained that specifically, an agreement has been reached that the private sector partners will contribute an additional two dollars for every dollar invested by NSIA. This means that the $200 million will generate at least $400 million more in additional investment capital.

He also disclosed that the outstanding 15 per cent initially left untouched of the $1 billion SWF has been allocated to the three components of the SWF with the Stabilization fund now standing at 20 per cent, the Infrastructure fund has been increased to 40 per cent as well as the Future Generation fund which has also been increased to 40 per cent.

Orji provided an overview of the investment initiatives of NSIA in Power, Healthcare, Transportation, Real Estate and Mortgage Finance, stressing that the NSIA is determined to fulfil its mandate by investing well and making good returns for the country.

Source : Leadership