The National Economic Council approved a cash injection of $650m (N198.25 billion) into the Nigerian Sovereign Investment Authority (NSIA). President Muhammadu Buhari said this in his Democracy Day broadcast yesterday.
The NSIA manages the Sovereign Wealth Fund (SWF), and with the fresh injection the savings in the fund is up to $2.15billion. However, the amount does not include the income generated across the three funds managed by the NSIA.
The move according to the president strengthens NSIA’s investment in local infrastructure, power, and health. Some notable projects that will benefit from the fund include the re-construction of the Abuja-Kano road, East-West Road (section V), the Mambilla Hydro-electric power project, as well as the construction of the Second River Niger Bridge.
His statement followed the NEC authorizing the transfer of funds to the NSIA as seed funding for Presidential Infrastructure Development Fund (PIDF), which has Buhari’s endorsement. PIDF will be managed by the NSIA and will be used for road and power projects.
Mr. Uche Orji, MD/CEO of NSIA, confirming the approval said that the Authority together with the Central Bank of Nigeria (CBN) are working out the modalities and to get the money sent to the account of the NSIA. He emphasized that the funds will be used for infrastructure projects under PIDF, and that the $650 million represents funds saved on behalf of the three tiers of government. The money will be transferred from the Nigeria Liquefied Natural Gas (NLNG) Dividend Account.
The NSIA, aside from the $2.15billion from the Nigerian Federation, also manages third-party assets; $350million assets for the Nigeria Bulk Electricity Trading Company (NBET) Plc and $100millon asset on behalf of the Debt Management Office (DMO).
The NSIA established three main funds: the Stabilization Fund, the Future Generations Fund and the Nigeria Infrastructure Fund. The fourth fund is the PIDF approved by President Buhari.
The Authority’s share ownership structure is made up of the federal government, states, local government and the FCT all with 45.83%, 36.25%, 17.76% and 0.16% respectively.
Image Credit:Ventures Africa & Guardian
