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NSIA Grows Assets Under Management to N617bn

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  • NSIA Grows Assets Under Management to N617bn

The Nigeria Sovereign Investment Authority has grown its assets under management to $1.9bn (N617.69bn).

The Managing Director and Chief Executive Officer, NSIA, Mr Uche Orji, said that as of the end of 2018, the NSIA had assets under management of $1.9bn (N617.69bn).

NSIA’s assets under management were N533.88bn in 2017, N420.93bn in 2016, N213.67bn in 2015 and N177bn in 2014.

Orji, at an interactive session with journalists in Lagos on Saturday, explained that in addition to its core funds, the NSIA managed third-party funds, including the Presidential Infrastructure Development Fund.

Orji said from 2012 to 2018, the NSIA reported six straight years of profitability in all its funds with core profits (excluding foreign exchange translation gains) of N28.45bn ($87.5m) for 2018.

He put the profit of the authority as of the end of 2018 at N46.50bn, compared to the N22.55bn recorded in 2017.

He said, “As the authority is shifting focus towards infrastructure and direct investments in Nigeria, returns will incubate longer and as a consequence, cash available for market- driven investments will decline. Despite this reality, total profits increased from N22.55bn in 2017 to N46.50bn (including FX translation gains) in 2018.”

He added, “Breakdown of returns in 2018 by funds is as follows: Stabilisation Fund (11.50 per cent); Future Generations Fund (3.30 per cent); Nigeria Infrastructure Fund (13.80 per cent). These against our benchmark of two per cent; six per cent and three to five per cent respectively.”

The NSIA was created by an Act of the National Assembly, Nigeria Sovereign Investment Authority (Establishment) Act 2011, and signed into law by the President on May 26, 2011.

The Federal Government owns 45.8 per cent of the agency; state government, 36.2 per cent; local government owns 17.8 per cent while the Federal Capital Territory owns 0.16 per cent.

The first board was inaugurated on October 9, 2012, while the authority commenced investment operations in the third quarter of 2013 with seed funding of $1bn.

It received $500m additional capital contribution between 2016 and 2017.

The operations of the NSIA are anchored on a three-fold mandate, namely building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure and providing stabilisation support in times of economic stress.

The NSIA also focuses on infrastructure investments in key sectors of the Nigerian economy, including agriculture, healthcare, power and toll roads implemented through Special Purpose Vehicles.

Speaking on the Nigeria Infrastructure Fund, Orji explained that the NIF was being implemented through three key pillars, which are direct investment, co-investments and investment/creation of enabling financial institutions, with the focus being on agriculture, roads, power, gas industrialisation and healthcare.

NSIA said under its direct investment strategy of the NIF, $10m was invested in the privatisation of the Nigeria Commodity Exchange.

It invested another $20m in the development of a cardiovascular diagnostic and treatment centre in the Lagos University Teaching Hospital in partnership with LUTH and Abraaj.

Aiming to improve the quality of education for Nigerian students, the NSIA said it invested $5m in Bridge Academies.

Under its co-investment strategy, it established the Gas Industrialisation Fund to invest in gas industrialisation projects with a view to stimulating the economy.

The firm stated that it participated in the $650m Presidential Infrastructure Development Fund by investing in four strategic infrastructure and power projects while $10m was invested in the $100m fund for agricultural finance in Nigeria, a project done in partnership with the German Development Bank, KfW, and the Ministry of Agriculture.

The NSIA also invested $25m in a $200m UFF Agriculture Fund, a Nigerian agricultural funding partnership with Old Mutual/UFF of South Africa.

As part of its creation of institutions’ strategy, the NSIA collaborated with the Federal Ministry of Finance to inaugurate the Nigeria Mortgage Refinancing Company to lower costs and improve access to mortgages.

It also inaugurated the Nigeria Infrastructure Credit Enhancement Facility in collaboration with GuarantCo and PIDG.

The firm said it worked with the Ministry of Finance to create the Development Bank of Nigeria.

It disclosed that it participated in the $129.3m Presidential Fertiliser Initiative aimed at blending 500,000 metric tonnes of NPK fertiliser.

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

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Banking Sector

Access Holdings Plc Plans $1.8 Billion Capital Raise

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Access bank

Access Holdings Plc, the parent company of Nigeria’s leading bank, Access Bank Plc, has unveiled ambitious plans for a $1.8 billion capital raise aimed at fueling its expansion efforts over the next four years.

The strategic move comes as Access sets its sights on becoming one of the largest lenders on the African continent.

During a conference call with investors in Lagos, executives outlined the company’s intention to raise $1.5 billion, or the naira equivalent, through the issuance of shares, bonds, or other financial instruments.

Also, Access aims to generate up to 365 billion naira ($257 million) by selling shares to existing investors.

Bolaji Agbede, acting group chief executive officer, clarified that the current fundraising initiative primarily involves a rights issue.

The capital infusion is earmarked to support Access’s ambitious growth plan, which commenced last year.

The bank intends to expand its footprint into new markets, including Morocco, Egypt, and the United States, as part of a broader strategy to double the share of assets outside its home market by 2027.

With operations spanning 22 countries, including the United Arab Emirates and the UK, Access Bank is positioning itself for significant international growth.

The recent appointment of Bolaji Agbede as acting group CEO follows the passing of co-founder and former CEO, Herbert Wigwe, adding a layer of significance to the bank’s future direction.

Access’s acquisition of National Bank of Kenya Ltd. underscores its commitment to expanding its presence in East Africa’s largest economy.

As Access Bank charts its course for expansion, the $1.8 billion capital raise signals its determination to seize opportunities in a rapidly evolving financial landscape, both domestically and across the African continent.

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Finance

OPEC+ Production Cuts and Geopolitical Tensions Propel Oil Price to Over $87

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Crude oil - Investors King

Oil price surged past the $87 price level on Thursday on the back of production cuts by OPEC+ nations and escalating geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, rose by $1.39 or 1.6% to $87.48 a barrel, its highest level since October 27.

OPEC+, the alliance of major oil-producing nations, has remained resolute in its commitment to curtail output, effectively tightening the supply of crude in the market.

Despite calls for increased production to alleviate soaring prices, the alliance has opted to maintain its course, further buoying the market sentiment.

Simultaneously, geopolitical tensions have added fuel to the fire. Attacks on Russia’s energy infrastructure, particularly by Ukraine, have sparked concerns over potential disruptions to the global oil supply chain.

Despite diplomatic efforts to deter such actions, the situation remains precarious, contributing to market anxieties.

Analysts suggest that these price surges may have long-term implications for global economies, particularly for oil-importing nations heavily reliant on stable energy prices.

Furthermore, the impact of rising oil prices on inflation and consumer spending patterns remains a point of contention among economists and policymakers.

As the world watches with bated breath, the trajectory of oil prices hinges on a delicate balance between geopolitical developments, OPEC+ policies, and the broader economic landscape.

For now, the $87 threshold serves as a stark reminder of the volatility and interconnectedness inherent in the global energy markets.

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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