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NSIA, Old Mutual, UFF Agri-Fund Sign $700m Deal on Agric, Real Estate

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Kemi Adeosun

The Nigeria Sovereign Investment Authority (NSIA) yesterday signed a total of $700 million-agreement with Old Mutual Investment Group (OMIG) South Africa, and UFF Agri-Fund for the establishment of real estate and agriculture co-investment vehicles, with massive direct investments expected in both sectors.

The signing came on a day the Minister of Finance, Mrs. Kemi Adeosun disclosed that the federal government had commenced discussions on the privatisation of the country’s railway system to provide necessary infrastructure for agriculture to thrive.

Under the real estate agreement signed, $500 million is expected to be invested in commercial and retail assets with an initial commitment of up to $100 million each from NSIA and Old Mutual, with deal origination and execution to be undertaken jointly by both parties.

The agricultural component of the deal will require both parties to make commitments for an initial vehicle size of $50 million ahead of the targeted $200 million, with deal origination and execution also expected to be undertaken jointly by NSIA and UFF Agri-Fund.

Speaking at the ceremony in Abuja, Adeosun said the agreement marked a critical milestone towards delivering on NSIA’s broader mandate to invest in key sectors of the Nigerian economy.

She said the privatisation of the rail system would help address storage issues relating to farm produce, boost competition and ensure that farmers can move goods from the farm to where they can be sold efficiently.

She said lack of infrastructure remained a key challenge to investments in agriculture.
The minister also said the federal government is currently examining the agricultural book with the Asset Management Company of Nigeria (AMCON) with a view to discounting some asset books in a bid to attract foreign investors.

She said: “One of the biggest problems with agriculture is infrastructure and it’s not that we don’t grow enough, it’s that very often, it (farm produce) rots in the fields because it’s so difficult to move it out or to store it.

“So, there is a lot of investments that need to go in before you go directly into agriculture. As far as our diversification plans are concerned, agriculture is absolutely critical and we are focused on it both in the budget and other areas both directly and indirectly.

“But the most important thing is infrastructure because until you can move goods from the farm to where they are being sold efficiently, we would not be able to be competitive.

“Our fields are as good and fertile as anybody’s else’s one in the world but the problem is that it’s cheaper to move goods from China to Lagos than moving it from Kano to Lagos and that’s because we don’t have the infrastructure. We’ve got to get our rail moving and then, we can begin to scale up direct primary agriculture.”

She noted that the agreements signed was in line with President Muhammadu Buhari’s administration’s concerted efforts to diversify the economy away from oil and attract investments into other core sectors which can stimulate sustainable growth.

Managing Director/Chief Executive, NSIA, Uche Orji said the deals would have multiple effects on agriculture and real estate as institutional investors from outside the country would be involved.

Deals with the proposed investors are expected to be closed and announced soon.
Orji said: “We believe that the real estate and agriculture sectors offer considerable potential for economic growth in Nigeria. Our commitment in these sectors is underpinned by the economic imperatives of urbanization, population growth and enhancement of liquidity for the sectors.

“The real estate vehicle once created alongside the Agriculture Vehicle will be configured to address some of these issues. The NSIA will continue to serve as a catalyst for private sector involvement in key sectors of the economy by exploring partnerships with credible entities such as Old Mutual Investment Group and UFF Agri-Fund.”

Also, Chief Executive, OMIG, Diane Radley, said that the partnership with NSIA was critical step in its plans for commercial real estate and agriculture strategies in Africa.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Government

FG Approves N1.85 Billion For Construction of Ebonyi Salt Lake Walls

The Federal Government on Wednesday approved a sum of N1.85 billion for the construction of walls around Ebonyi Salt Lake.

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The Federal Government on Wednesday approved a sum of N1.85 billion for the construction of walls around Ebonyi Salt Lake.

Briefing newsmen at the end of the Federal Executive Council (FEC) council meeting on Wednesday, Minister of Mines and Steel Development, Olamilekan Adegbite disclosed that the project will be funded directly by the presidency. 

The Minister further explained that the 27km retaining wall would contain the loss of raw salt from the salt lakes in Ebonyi State, saving at least $88m spent yearly on salt importation.

Investors King earlier reported that Nigeria spent at least N155 Billion within the last two years to import salt and other locally available products from Asia and South America.

Salt is one of the most common mineral resources in Nigeria. A large deposit of salt could be found in Ebonyi State. The state even prides itself as the “salt of the nation”.

However, Nigeria has not been able to successfully preserve and mine the large salt deposits. 

The Minister nevertheless disclosed that the wall which will be built along the lake will help to solve the challenges. 

“The salt is in Ebonyi State, of course, naturally, but it cannot be mined without this infrastructure that we’re about to do, we’re building a retaining wall because water comes in and washes the salt away every time. 

“These are salt lakes that occur naturally, so the salt is in the lakes, but when water comes in, it washes the salt away”. He noted. 

According to the Minister, the wall which has been awarded to Reinforced Global Resources Limited, at the sum of N1.85bn is about 27 kilometres long and about 2.9 meters high. 

The retaining wall project is expected to be completed within six months after which the process of salt mining from the lake will begin. 

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Nigerian Political Parties to Spend Billions of Naira as INEC Lift Ban on Political Campaigns

Political parties in Nigeria are expected to spend billions of naira in the next year’s elections as INEC officially lifts the ban on political activities. 

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2023 Presidential Candidates

Political parties in Nigeria are expected to spend billions of naira in the next year’s elections as INEC officially lifts the ban on political activities. 

It is about five months to the next general election in Nigeria where citizens will go to the polls to cast their vote for the candidate of their choice. Political parties are expected to spend billions of naira during this electioneering process as it was in previous elections. 

It will be recalled that the Independent Electoral Commission (INEC) has fixed February 25th for the Presidential and National Assembly elections while Governorship and State Assembly elections will be held on March 11th, 2023.

Investors King understands that Nigerian previous elections were hugely monetised and next year’s election would not be an exception. 

A closer analysis of the presidential election shows that there are 18 Presidential candidates which will compete in 176,846 polling units. 

Going by the electoral laws and the previous election, all candidates are expected to appoint polling unit agents who are offered some token for their service. 

Investors King gathered that in the last elections, polling units agents were offered between N10,000 to N20,000. Using N10,000 as a variable, this means each of the leading political parties will expend at least N1.7 billion on polling unit agents.

Other areas where political parties are expected to spend money include logistics, public campaigns, posters and banners, courtesy call gratification and security among others. 

Besides, it is also expected that the leading political parties will engage in vote buying which could run into hundreds of billions of naira. Many Election Monitoring Groups (EMGs) such as Yiaga Africa have alleged voter inducement in previous elections. 

Political parties spend between N5000 to N10,000 to induce voters. It can be assumed that parties will spend more in the next general election since Nigeria’s voter population has increased to 95 million, adding more than 12 million new registered voters in the just concluded voter registration. 

Meanwhile, the Independent Electoral Commission (INEC) has disclosed that the commission will spend N305 billion to conduct the 2023 election. This is different from the commission’s yearly budget which currently stands at N40 billion. 

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Nigeria Senate to Tax Unoccupied And Expensive Building Owners in Abuja

The Nigeria Senate intends to introduce a bill to tax unoccupied and outrageously expensive buildings in the Federal Capital City. 

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real-estate

The Nigeria Senate intends to introduce a bill to tax unoccupied and outrageously expensive buildings in the Federal Capital City. 

The Chairman Senate Committee on Federal Capital Territory, Senator Adeyemi Smart lamented that there were too many unoccupied buildings in the city despite being completed and built to taste. 

A check by Investors King shows that thousands of expensive houses are left unoccupied in Abuja, especially in high-net-worth neighbourhoods such as Guzape and Katampe Extension (Diplomatic Zone).

Smart Adeyemi made it known at a press briefing with members of the committee that the Senate will introduce a property tax bill on such buildings to mitigate the issue of accommodation in the capital city which has been a critical burden on average citizens. 

He said, “We have found that in this city, many houses are without habitation. There are a lot of mansions with no one living in them and no one is asking questions.

He added that the government will lock any uninhabited building and cause the owner to pay a fee to the government. 

“If you have built houses and they are unoccupied, we’d find out the reasons and tell the government to lock them up so that criminals will not take charge.

We’d propel legislation that will cause them to start paying taxes so that we’d use the money to develop the city”. He said.

The Senator also questioned why expensive buildings will be left unoccupied for years if the funds are from legitimate sources.  

It will be recalled that the ICPC Chairman Prof. Bolaji Owasanoye, warned estate developers against serving as conduits for Illicit Financial Flows, (IFFS) at the commission’s 13th Annual General Meeting, AGM held in July 2022.

The ICPC Chairman further stated that the commission is currently probing completed and unoccupied estates in Abuja, Lagos and Port Harcourt, with the help of sister agencies.

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