NSIA showcases strategy behind subsidiary growth

The Nigeria Sovereign Investment Authority (NSIA) has unveiled the strategic framework behind its successful portfolio expansion, highlighting governance, innovation, and capital mobilisation as the cornerstones of its subsidiary development.

Speaking at the NSIA’s 2024 Earnings Presentation and media engagement in Abuja, Managing Director and CEO, Aminu Umar-Sadiq, said the institution’s decade-long effort to build and nurture a diverse portfolio of subsidiaries has positioned it as a key driver of economic transformation in Nigeria.

“Our approach is rooted in strong governance, robust risk management, and a solid operational focus. These principles have allowed us to optimise performance while staying aligned with our long-term objectives,” Umar-Sadiq noted.

He outlined six strategic pillars underpinning NSIA’s investments: Capital Formation, Strategic Impact Investment, SME Development, Direct Investments, Ecosystem Development, and Capital Mobilisation. Through initiatives such as the Nigeria Infrastructure Debt Fund (NIDF), Carbon Vista, and the Green Guarantee Company (GGC), the NSIA has catalysed capital and de-risked projects across sectors like housing, healthcare, finance, agriculture, and renewable energy.

On capital mobilisation, the NSIA boss revealed that several of its platforms have significantly outperformed initial expectations. “We started with $25 million and now have over $300 million in attracted capital — not including tier-two capital,” he said. “Currently, we have about $500 million in committed capital and over $1 billion in total capital attracted across our projects.”

Notable investments include the Nigeria Mortgage Refinance Company (NMRC), which is in talks with a major Development Finance Institution (DFI), and a pending oncology investment close to securing tier-one DFI support.

Umar-Sadiq also stressed the need to localise solar panel production amid Nigeria’s expanding renewable energy market. Commenting on the federal government’s restriction on solar imports, he said: “With the proliferation of solar projects nationwide, there’s a compelling need to domesticate solar panel manufacturing.”

To that end, NSIA has launched the Renewables Investment Platform for Limitless Energy (RIPLE) — a $500 million initiative focused on developing the full value chain of renewable energy. The platform covers solar panel and battery manufacturing, as well as diesel displacement initiatives and franchised energy models.

“Ripple is our current pride and joy,” he stated. “It’s our bold step toward achieving energy security and sustainability, with projects like the co-located solar initiative at Shiroro showcasing our commitment.”

With a diverse portfolio, clear vision, and strong partnerships, the NSIA continues to play a pivotal role in Nigeria’s long-term economic resilience and inclusive growth.

Chima Nwokoji