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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.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

Wema Bank, MOD Launch Scheme For International Students

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Wema Bank has launched an advisory and loan scheme, the Education Advisory Service, in partnership with MOD Education for young Nigerians wishing to study abroad.

Following foreign exchange control measures introduced by the government, parents and guardians have experienced difficulties paying tuition fees for their children and wards studying abroad. Some who have the money don’t know the requirements for foreign admission and waste lots of time and resources in fruitless searches.

But to help them surmount these challenges, Wema Bank has partnered with MOD Education, a professional student advisory, marketing, recruitment and placement company for the advisory services and school fees advance facility. The partnership, which was launched on Friday, April 9 at Eko Hotels, Victoria Island, will see both organizations providing innovative education advisory services and funds for international students.

Speaking about the partnership, Divisional Head, Retail Business, Wema Bank, Dotun Ifebogun, explained that the initiative would aid hundreds of thousands of Nigerians requiring advisory and financial support to pay for their wards in foreign schools.

He explained that Wema Bank does not want the aspirations of Nigerians desirous of foreign education truncated, hence the support.

“We are interested in everything that concerns our customers, and education is one of them. Some parents and guardians desire a certain quality of education for their wards outside the shores of Nigeria, and we would be able to assist them with this product. Our school fees advance loan results from the requests of parents and guardians who need to get short term financial support to meet the tuition obligation of their wards irrespective of the constant increase in fees.

“There’s nothing as heartbreaking as withdrawing a child already in a foreign university or being unable to raise the requisite forex for a child offered admission in a top-rated foreign institution of higher learning. But our school fees advance loan will take care of this problem and help secure the futures of such students – both undergraduates and postgraduates. The fact that you get counsel from the right sources at any particular time is another benefit of this product.

Also, the Managing Director, MOD Education, Michael Dosunmu, expressed gratitude to Wema Bank for the partnership. “Wema Bank has been supportive to us as a business and it was just a natural marriage. We trust the bank enough to bank with them, and our trust is enough to recommend it to others.”

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Finance

NAIC Pays N1.7bn Claims to Farmers

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The Nigerian Agricultural Insurance Corporation (NAIC) said it paid a total of N1.7 billion claims to over 5,000 farmers in the past two years.

NAIC, which is the only federal government owned insurance company authorised to offer agric insurance services to farmers at subsidised rate, said a breakdown of the paid claims showed that it paid N856 million to insured farmers in 2019 and N848 million in 2020.

Commenting on the development, NAIC Managing Director, Mrs. Folashade Joseph, said the claims were paid to the farmers to cover losses incurred in the course of doing business.

Joseph, enjoined agricultural investors and lending institutions to continue to partner NAIC by taking agricultural insurance cover that will enable them remain firm in business despite unforeseen circumstances from weather conditions and other risks in order to realise the food security agenda of President Muhammadu Buhari.

She said the above-mentioned amount was shared among five million farmers who suffered various setbacks in their farms as a result of natural course.

According to her, the NAIC Agric Insurance Scheme was launched in 1987 by federal government to restore the confidence and productivity of Nigerian farmers who suffered losses as a result of natural disaster such as flood, drought, pest and diseases.

The NAIC boss explained that the essence of the sensitisation campaign embarked by the corporation was to let the farmers know and understand exactly what NAIC does, the importance of insurance, and make them understand how insurance works, how they can access NAIC products and services, how to process their claims, as well as what insurance stands to do for them.

“Agribusiness is evolving fast and so many risks are being thrown up, many new participants are coming into the business of agriculture, and the risks are on the increase if you look at them across the value chain, there is no so many participants so we need to keep sensitising the farmers and let them know we are serving them, and we need to know from them how to serve them,” she explained.

Speaking further, she said, “our assurance to farmers is that when they are insured and they suffer losses covered by any of the policies they purchased, including natural disasters and whatever, they will get paid for their losses, and that is the purpose of insurance and setting up NAIC.

“Our motor is ‘Plowing the Farmer Back to Business, Plowing the Farmers into Prosperity’, and we settle claims.”

She said NAIC currently deals with thousands of farmers (Small, Medium, and Large scale farmers) across the country, adding that the corporation serves farmers with investment as little as N100, 000, and at the same time serves multinational farmers.

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Banking Sector

UBA Organises Capacity Building Forum

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UBA Insider dealings

As part of its commitment to support the growth and sustainability of micro, small and medium-scale enterprises (MSME) in the continent, the United Bank for Africa (UBA) Plc, is set to organise the next edition of its UBA Business Series.

The UBA Business Series which is a monthly event, is an MSME Workshop as well as a capacity building initiative of the bank where business leaders and professionals share well-researched insights on best practices for running successful businesses, especially in the face of the difficult operating environment that dominates the African business landscape.

Through this initiative, UBA has been assisting with essential tips to help businesses re-examine their models and strategies and ensure that they stay afloat and remain thriving, a statement from the bank explained.

The topic for the next edition of the series is, “Managing Performance for Business Growth,” and it will be held today, via Microsoft Teams.

At this session, the Managing Director, Secure ID Limited, Mrs Kofo Akinkugbe, will be sharing useful tips and insights on the key strategies of performance management to boost business growth.

Akinkugbe is the founder of SecureID Nigeria, a MasterCard, VISA and Verve certified Smartcard Personalization Bureau and Digital Technology company. She currently serves as the Managing Director/CEO, Secure Card Manufacturing, – a Smartcard manufacturing plant producing high security identity cards and documents for the Banking, Telecoms and Public sectors across Africa and beyond.

UBA’s Head, SME Banking, Sampson Aneke said of Akinkugbe, “with her vast experience garnered over the years from various sectors, she will help business owners understand how performance management strategies can be effectively implemented to ensure business growth.”

He emphasised UBA’s commitment and deep passion for small businesses, which according to him, remains the engine of any developing economy adding, “We know small businesses are the backbone of the economy in every country. In many climes, businesses with fewer than 100 employees account for 98.2 per cent of all businesses. This no doubt captures the importance of SMEs to a thriving economy which is why UBA is committed to seeing them flourish.”

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