The Nigeria Sovereign Investment Authority on Wednesday said it would invest the sum of $10m (N1.6bn) from the Sovereign Wealth Fund being managed by it in the Nigerian Mortgage Refinancing Company.
The Managing Director/Chief Executive, NSIA, Mr. Uche Orji, disclosed this while briefing journalists in Abuja on the progress so far made with the fund.
The Federal Government had two weeks ago injected $550m into the fund, bringing the total portfolio of the SWF to $1.55bn from an initial investment of $1bn.
The NMRC was inaugurated on January 16, 2014 by President Goodluck Jonathan to help property owners to refinance their mortgage expenses if interest rates drop, using the same property as security or collateral.
The government seeks to use the company, in partnership with the private sector, to make it easier for many Nigerians to own their houses.
Orji said the $10m investment in the NMRC was about 20 per cent of the initial total capital of the firm, noting that the strategy of the NSIA was to invest in tools that would accelerate the market.
He said, “We have put $10m in the NMRC, which is roughly 20 per cent of the initial capital of the NMRC. Our strategy is to invest in tools that will accelerate the market as well as make direct investments.
“To that extent, we made an investment in the NMRC as a core equity investor.”
Orji said the company was also negotiating with a state government as well as the Federal Capital Territory for an affordable housing project, which would be executed before the end of this year.
From the three pots from where investments could be made, he said the NSIA had allocated 20 per cent to the Stabilisation Fund; 40 per cent to the Future Generation Fund; and another 40 per cent to the Infrastructure Fund.
The NSIA boss explained that as of December 2013, all the funds were profitable, adding that the first annual report of the company would be published in April.
Giving a breakdown of the performance of each fund, Orji said, “Investment activity started in October with the Stabilisation Fund, which remains allocated to the three portfolio managers we had announced in September.
“So far, the performance is in line with expectation with the fund expected to earn a modest positive return.”
On the Infrastructure Fund, Orji said of the 13 areas defined by the management, the investment had been narrowed done to five sectors of agriculture, real estate, motorways, power and healthcare.
He also stated that four subsidiaries had been incorporated to execute the investment strategies of the Infrastructure Fund.
The subsidiaries are the NSIA Motorways Company Limited, NSIA Power Investment Company Limited, NSIA Healthcare Investment Company Limited, and NSIA Real Estate Investment Company Limited.
On power, he said, “We allocated $100m to the power sector and have an agreement with a private equity company. We are still looking at opportunities, both for Greenfield and secondary investments.”
Orji also said that the company would be investing in the second Niger Bridge and the Lagos-Ibadan Expressway through its motorways investment subsidiary.
Source: Punch (by Ifeanyi Onuba)
