NSIA Prioritises Investment In Agriculture, Power, Roads, Healthcare

NSIA Managing Director, Uche Orji

***Getting Second River Niger Bridge To Visible Structure level Tops Priority – Orji

By CLEMENT NWOJI, ABUJA

The Nigeria Sovereign Investment Authority (NSIA) said it is refocusing its investment priorities in favour of deploying funds into development oriented infrastructure projects as its total assets recorded a growth of 27 percent to N533.88 billion at the end of last financial year ended 31 December, 2017.

The key priority project areas include agriculture, power, roads and healthcare which the Authority hoped to deploy investments.

The NSIA Managing Director and Chief Executive Officer, Uche Orji, disclosed these while briefing Journalists on its 2017 Financial Statement and Performance at the weekend.

He particularly said the financing of the second River Niger bridge to the level that when anyone is approaching the site, real bridge structure can be observed, is a major priority this year.

He noted that in the past, only 40 percent of its investments was channeled to infrastructure, adding however that henceforth the Authority has resolved to deploy at least 50 percent into funding of infrastructure.

Giving insights into the nature of the projects, he said the attention of the NSIA would shift to domestic direct investments in infrastructure which returns on investments take quite a long time unlike in the past when the return is almost instant.

According to him, “Also, to reflect our focus now on domestic direct investment in infrastructure, we are from this year going forward, last year any new contribution that came has now shifted from 40 percent in infrastructure to 50 percent in infrastructure. That comes at the expense of future generations fund.”

Before now, the ratio of investments had been 20 percent stabilisation fund, 40 percent future generation fund and 40 percent Nigeria infrastructure fund.

However, the NSIA Managing Director said: “Going forward from last year, a decision was now taken, 20 percent stabilisation fund, 30 percent future generation fund and 50 percent Nigeria infrastructure fund.

“Our focus areas have also narrowed down a little bit. I need to make it clear about our focus areas. There are many areas of our interest. But the areas we are going to actively pursue and develop projects by ourselves, sponsor projects if it is necessary and invest in these projects are now agriculture, power, toll roads and healthcare.”

Mr. Orji noted that there has been a vacuum in deployment of lots of investments in these areas and this has constituted problem in the economic development of the country.

Currently, he disclosed that assets under the NSIA management include: NSIA core capital – $1.5 billion; Other third party managed funds include $511.4 million which comprised of the Nigeria Bulk Electricity Trading (NBET)- $350 million currently valued at $390.45 million as at 31 December, 2017 and the Debt Management Office (DMO)- $100 million currently valued at $120.95 million also as at 31 December, 2017.