Nigeria’s NEC plans to invest $250mn in sovereign wealth fund

The National Economic Council of Nigeria has recently approved USD 250 million to in the country's sovereign wealth fund. Read the texts below to know more in details.

Made up of Nigeria's 36 governors and the Central Bank, the National Economic Council will be releasing the money to the Nigeria Sovereign Investment Authority for Investment Authority for investing in the fund, Laolu Akande, Senior Special Assistant to the President on Media & Publicity Office of the Vice President said.

The approval was made at its 99th meeting, chaired by Vice President Yemi Osinbajo, in Abuja on Thursday, following the presentation made to the council by the NSIA Managing Director, Mr. Uche Orji. Irrespective of volatility in the market due to the US and China trade disputes and Brexit, the Group made a total of USD 26 million in total comprehensive income in the first 6 months of the year," he said, as reported by APA.

The council was previously informed by the NSIA that it intends to "deploy capital into the three road projects under the Presidential Infrastructure Development Fund – to complete the second Niger Bridge, Abuja – Kano highway and Lagos – Ibadan Express way as well as the Mambilla Power Project''. "That the NSIA intends to create a number of co-investment funds, in the area of Healthcare, Agriculture and Gas Projects.

"These projects worth $8.2 billion (N2.5 trillion), will be implemented under a business model, that includes the payment of reasonable service charges (e.g. tolling of roads, electricity tariffs etc) after the projects have been fully developed."

Besides the additional USD 250 million, NEC also resolved that the "Governor of Kaduna State should chair a NEC Committee to consider how a portion of Pension Funds can also be leveraged into investment for the NSIA with possible involvement of PENCOM." "The Committee will include the Finance Minister, CBN Governor and the NSIA MD."

On the presentation by the Minister of Mines and Steel Development, Mr. Olamilekan Adegbite, on the development of the solid minerals sector, the Council resolved that "there should be collaboration between the Federal Ministry of Mines and Steel Development and the State Governments on environmental issues and concerns in the States".

Regarding community relationship with the miners, it was agreed that there should be a full time engagement of the communities to avoid the mistakes made in the oil and gas sector.