Nigeria’s sovereign fund is set to fuel the country’s infrastructure growth with up to US$1 billion in a three-year program of investment in solar energy and healthcare.
The new CEO of the Nigeria Sovereign Investment Authority (NSIA), Aminu Umar-Sadiq, is keen to demonstrate his leadership, following a decade of success under his predecessor Uche Orji.
Umar-Sadiq said the fund is “in the process” of raising funds internally and from partners to implement the projects.
The US$2.3 billion Nigeria Sovereign Investment Authority has three sub-funds that are strictly segregated. With infrastructure representing 40% of AUM, the US$1 billion target will require new sources of cash, probably in the form of excess oil revenues as well as external financing through partnerships with the private sector.
The Nigeria Infrastructure Fund (NIF) achieved several significant projects in 2022, including:
achieving a second year running of profit in the Presidential Fertiliser Initiative (PFI);
the commissioning of the Pandagric Novum poultry feed farm in September 2022;
the continuing development of 1.5 million tonnes per annum ammonia and di-ammonium phosphate production plants in Akwa Ibom State;
continuing development of highways under the Presidential Infrastructure Development Fund (PIDF);
the commencement of the development of 23 new modern medical diagnostic centers of excellence;
the completion of the 10MW Haske solar power plant in Kano.
NSIA oversees three funds with different mandates, all of which reported growth in 2022. Announcing the release of annual results, Umar-Sadiq said, “In 2023, we will be resourcing our various platforms targeted at emerging sectors – renewable energy, sustainability, and innovation – which will ensure the Authority achieves its dual objectives of delivering financial returns and impactful social outcomes.”
Forming the strategic part of the NSIA, the National Infrastructure Fund (NIF) remains its largest mandate, representing around half of AUM, but does not provide details on an annual return.
The NIF has a three-pronged approach:
Direct Investment Strategy: Presidential Infrastructure Development Fund for road construction and Mambilla Hydropower Project; cancer diagnostics and radiology facilities
Co-Investment Strategy: Developing agriculture and innovation through contributions to the Fund for Agricultural Finance in Nigeria, NSIA-UFF Agriculture Fund and Innovation and Digital Technology Fund
Institutions to support financial market infrastructure: launching low-cost mortgages, infrastructure credit guarantees, operationalized the Development Bank of Nigeria for banking support for MSMEs.
It is branching out into various sectors, including healthcare, fertilizer production, animal feed processing, solar energy generation, and the development of financial infrastructure to foster greater inclusion. It is going further to support local innovators through VC.
NSIA CEO Aminu Umar-Sadiq