The Nigeria Sovereignty investment Authority (NSIA), said it has invested N571bn on some vital national project, such as: the Completion and handover of the Second-Niger Bridge Project, the Lagos-Ibadan Expressway Project, Abuja-Kaduna-Kano expressway project among others.
The Second-Niger Bridge project is a 1.6km bridge in the South-Eastern part of Nigeria connecting Asaba to Onitsha.
The Lagos-Ibadan Expressway project – LIE – is a 127.6 km-long expressway cutting through Lagos, Ogun, and Oyo States which is over 90% to completion, while, the Abuja-Kaduna-Zaria-Kano Road (AKR) is a 375.9 km highway that connects the north of Nigeria to other parts of the country.
It is a revised project.
Aminu Umar Sadiq, the managing director of the Nigeria Sovereign Investment Authority, noted this in Abuja in the course of the public presentation of NSIA’s the 2023 financial earnings.
The NIF in 2023, pivoted to a thematic approach to investing, prioritizing trends and long-term growth potential across five strategic thematic areas: Transport and Logistics; Industrialisation; Services; Technology and Innovation; as well as Climate and Sustainability.
NSIA continued to maintain its status as the premier public sector institution that develops, executes and invests in complex infrastructure projects through its activities in NIF and other Governmental mandates.
Aminu said the investment is targeted at boosting the country’s domestic infrastructure and boosting economic viability.
The NSIA projects also includes “completed and commissioning of the 10MW solar project in Kano and the corresponding interconnection and distribution infrastructure, “ launching the NSIA Advanced Medical Service Ltd (MedServe) after successfully operationalising 3 proof-of-concept centers.
Initiation of its Healthcare Expansion Programme through MedServe aiming to establish 23 diagnostic centers, 7 catheterisation labs, and 3 oncology centers across Nigeria’s six geopolitical zones and the Federal Capital Territory in two phases. Construction of the first 10 centers is scheduled to commence in Q1 2024.
It also Created a US$500 million Renewables Investment Platform for Limitless Energy (RIPLE) to promote the development, investment, and operation of renewable energy projects across the entire value chain.
In collaboration with Vitol, established Carbon Vista, for investments in carbon reduction and avoidance projects. While collaborating with InfraCredit to develop an innovative construction finance warehouse facility to unlock long-term domestic capital to finance greenfield climate infrastructure projects in Nigeria.
NSIA launched a US$15 million Joint Preparatory Facility with Afreximbank, and commenced the development of a 10,000-seater Arena in collaboration with Metrowave Sports and Infrastructure Limited (MSIL), providing a dedicated venue for sporting events, concerts, conferences, exhibitions, and other events. NSIA also aim at exploring strategic partnerships to scale the program in 2024 (NPI 2.0).
Aminu stated further that “The NSIA’s impact on domestic investments has created real-time jobs and contributed to ease of doing business”.
Subsequently, by creating a more attractive investment environment, the NSIA is effectively leveraging its resources to attract significant additional capital for critical projects.
According to him,
“Already, the NSIA has made investments in over 50 per cent of locally owned and operated private equity funds. This targeted support strengthens the local financial ecosystem and empowers homegrown businesses to contribute to national development,”
He acknowledged key factors affecting investments both domestically and internationally, including tightening global monetary policy, China’s economic slowdown, the 2023 United States Banking crisis, Nigeria’s political transition, and persistently high inflation.
Established by the NSIA Act, which was signed into law in May 2011, the Nigeria Sovereign Investment Authority (“NSIA” or “The Authority”) is an investment institution of the Federation set up to manage funds in excess of budgeted hydrocarbon revenues.
Its mission also includes playing a leading role in driving sustained economic development, enhancing the development of Nigeria’s infrastructure, providing stabilization support in times of economic stress.
According to the Audited result for the 2023 financial year, NSIA recorded for the 11 consecutive years, continuous positive earnings with a cumulative annual growth rate of 11 7.3%.
It Net Assets grew 119% to ₦2.22 trillion in Dec-23 (Dec-22: ₦1.02 trillion).
NSIA’s Total Operating Income increased from ₦101.1 billion in the previous year to ₦1.18 trillion, inclusive of foreign exchange gains during the period.
This significant rise was attributed to the positive performance of the equities and fixed-income portfolios, as well as the positive performance of NSIA’s infrastructure investments.
The Total Comprehensive Income closed at ₦1.18 trillion for 2023, a growth of 1,122% relative to ₦96.96 billion in 2022.
NSIA’s core Total Comprehensive Income (excluding foreign exchange gains) rose from ₦21.39 billion in the previous year to ₦164.69 billion, marking a 670% increase attributable to the Authority’s robust strategic asset allocation and adherence to best-in-class enterprise risk management processes.
However, as at the time of filling this report, our correspondent is yet to receive a response from the inquiry sent to the Nigeria Sovereignty investment Authority (NSIA), requesting breakdown and further analysis of each of the projects of which the some of N571bn was invested.
