Managing Director/Chief Executive Officer of Nigeria Sovereign Investment Authority (NSIA), Mr. Aminu Umar-Sadiq, on Tuesday disclosed that the Agency’s net assets grew from N156 billion ($1 billion) in 2013 to N1.017 trillion ($2.27 billion) in the 2022 fiscal year.
Mr. Umar-Sadiq disclosed this during investigative hearing organised by the House of Representatives’ Ad-hoc Committee on NSIA, chaired by Ademorin Kuye (APC-Lagos), who demanded for details of utilisation of the public funds accrued into the NSIA coffers since inception in 2011.
Breakdown of the approved fund showed that the sum of $250 million capital was approved by the 1st Governing Council of National Economic Council (NEC); completed Early Works & Negotiation of concession agreements for 2nd Niger Bridge; while the 2nd NSIA Board also approved $250 million capital injection.
While reeling out some of the successes recorded so far, he disclosed that over $500 million had so far been invested into domestic infrastructure; catalysed over $1 billion in third party investment; developed/co-developed over 10 institutions and platforms to improve financial market ecosystem; invested in over 80 percent of locally owned and run private equity (PE) funds, among others.
According to the statistics of core assets released to the Ad-hoc Committee, the sum of $285.8 million is accrued into the Stabilization Fund account; $899 million accrued into Future Generation Fund while $1 billion has so far accrued into the Nigeria Infrastructure Fund coffer, respectively.
The Organisation was also appointed to serve as Investment Manager for the $200 million Debt Management Office’s funds for Gas-to-Power infrastructure projects as well as Investment Manager for the N200 billion on behalf of NESI Stabilization Strategy Limited.
According to him, the Organization received the sum of $1.75 billion funding, out of which the sum of $150 million was disbursed to the Government to cushion the economic stress caused by COVID-19 pandemic.
He disclosed that the agency has developed a 10MW solar panel project with over 500 jobs to be created directly/indirectly; 13,504 housing affordable housing units under construction; supported over 236,000 farmers through agro projects, commissioned and Operationalized $11 million Cancer Treatment Centre colocated with the Lagos University Teaching Hospital; completed construction and pre-operational activities on $11 million diagnostic centres in Kano and Abia; commenced deployment of $650 million in Presidential Infrastructure Development Fund projects as well as development of a 1OMW solar power plant in Kano State; the largest solar power plant in West Africa.
The Organisation also approved $100 million in the JV agreement-OCP ammonia project (MIPL) in 2021, a $1.4 billion Ammonia and DAP project in JV with OCP; commenced 2nd Niger Bridge project; injected $550 million into NSIA to be managed on behalf of NBET and DMO; invested $100 million in Savannah Petroleum (Formerly Seven Energy); signed MoC with six Federal healthcare institutions across country through the NSIA’s healthcare subsidiary; commenced Presidential Fertiliser Initiative via NAIC-NPK Ltd; $200 million Agriculture Fund with UFF Agri Fund of South Africa; $500 million Real Estate Fund with Old Mutual Africa Property Management Company of South Africa; secured approval to invest in pre-privatisation phase of the Nigeria Commodities Exchange; commenced the formation and operationalization of the Presidential Infrastructure Development Fund (PIDF); began development on ammonia plant with OCP Group of Morocco; invested $25 million in Project Panda, an agriculture project North of Abuja; invested $5 million Babban Gona in smallholder farmer in Northern Nigeria and returned $417.46 million to the Nigeria Bulk Electricity Trader (NBET) of $67.46 million over a 4-year term.
On his part, President of Association of Local Government of Nigeria (ALGON), Comrade Kolade Alabi, who demanded for details of beneficiaries of various projects reeled out by the NSIA helmsman, said: “None of this project, to the best of our knowledge can be seen or felt at the Local Government.
“They have spoken well in partnership with the communities but my question is how can you partner with the communities without Local Governments?
“They have spoken well about health delivery, but the one that is within the remit of the Local Government is primary healthcare. Your investment is to State Government’s hospitals and not Local Government’s hospitals.
“You have spoken well about schools but our own jurisdiction is primary schools, but we have not seen a single school. You have talked about 13,500 affordable houses but to who? Who would be the beneficiary,” he said.
In his presentation, Director-General of Nigeria Governors Forum (NGF), Asishana Okauru argued that Local Government Areas are mere appendages of the states and not a Federating unit, hence cannot technically be a direct beneficiary of the Sovereign Wealth Fund.
Mr.. Okauru, who was represented by NGF’s Executive Director, Strategy and Research, Mr. Lateef Shittu, said since the states are satisfied with the NSIA operations, the Local Governments cannot claim not to be aware of projects being carried out by the agency.
He said technically, the states are real owners of the NSIA since they control over 54 percent of the shares of the agency alongside the Local Governments.
According to him, going by the composition of the NSIA, the Federal Government owns about 49.96 percent of the investment, while the 36 States and 774 Local Governments control about 54 percent.
He disclosed that in 2022, the Governors requested a presentation on the operations of the NSIA from the management, adding that “we were satisfied with the presentation and what they are doing.
“If you look at the Constitution, the country is runned as a federal system. We have only two federation units – the Federal and State Governments.
“The Local Government is not a Federating unit, but an appendage of the States, even though it is recognised in the Constitution as a Third Tier of Government. That is why you have a state and local government joint account. They don’t get money directly from the Federations Account.
“Every single project executed by the NSIA is located in a Local Government and so, they are beneficiaries of the NSIA projects and we are satisfied with what they have been doing.”
He acknowledged the NSIA investment in health and education, ṣaying the health facilities being invested in by the agency were health facilities belonging to the states, while those of the Local Government have joy benefited.
Chairman of the committee, Hon. Ademorin Kuye said the aim of the investigation was to ensure that the statutory provisions of the law establishing the agency was adhered to.
He said the House wants to be able to have answers to questions from Nigerians on how the funds of the agency were being managed, adding that if the need arises, the committee will visit sites of projects being handled by the agency to ensure value for money.
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