Our Investment
Investing in high priority developments to drive Nigeria's Economic Goals
Across the three funds, investments are made in high-priority projects with the aim of catalysing developments on a national scale to stimulate economic growth.
To deliver its development objectives, NSIA either sponsors or invests in projects and programmes which afford long-term socio-economic benefits to the Nation and invests in high-priority developments to drive Nigeria’s economic goals.
The NIF focuses on domestic infrastructure investments that meet the following four criteria:
- alignment with national priority,
- potential to attractive commercial and social returns;
- the ability to attract both domestic and foreign private sector participation,
- availability of conducive regulatory and legislative environment.
Out of the fifteen investible sectors identified at the inception of the NSIA, the core areas of initial focus are agriculture, financial markets infrastructure, healthcare, motorways, power, gas industrialization and innovation & technology.
Other sectors will be addressed as assets under management increase or if compelling opportunities become available.
The Three Mandates
NSIA commenced operations in October 2012 with an initial allocation of US$1 billion in seed capital. As provided for by the NSIA Act, NSIA’s investments are made through three distinct funds:
Objective
To provide stabilisation support in times of economic stress.
Initial %Assets Allocation & Size
20% allocation / US$400 million
New % Allocation & Current Size**
20% allocation / US$921million
Strategic Asset Allocation / Focus Sectors.
Asset Class Allocation
| US Treasuries & Investment Grade Corporate Fixed Income | 75% |
| Cash | 25% |
Mandate / Recent Investments
Capital preservation and liquidity. The Stabilisation Fund thus has a short-term investment horizon and invests in conservative fixed income mandates.
Expected Average Annualized Returns
US CPI
Investment Horizon
Short Term
Objective
To invest in a diversified portfolio of growth investments to provide future generations of Nigerians a savings base for such time as the hydrocarbon reserves are exhausted.
Initial %Assets Allocation & Size
40% allocation / US$400 million
New % Allocation & Current Size**
30% allocation / US$921million
Strategic Asset Allocation / Focus Sectors.
Asset Class Allocation
| Public Equity | 30% |
| Private Equity/Venture | 25% |
| Absolute Return | 20% |
| Cash & Other Diversifiers |
25% |
Mandate / Recent Investments
- Public Equity is split 50% Developed markets and 50% Emerging Markets
- Private Equity Commitment is split roughly 25% secondary and 75% primary interest.
- Absolute returns: Four Hedge fund strategies such as global macro, credit, long/short equity etc.
- Others include Aircraft leasing, Healthcare royalty, commodity etc.
Expected Average Annualized Returns
US CPI + 400 BPS
Investment Horizon
Medium to Long Term
Objective
Enhance the development of infrastructure, primarily through investment in domestic infrastructure projects that meet targeted financial returns.
Initial %Assets Allocation & Size
40%
New % Allocation & Current Size**
50%
Strategic Asset Allocation / Focus Sectors
Mandate / Recent Investments
- Gas Industrialisation: Co-developing a US$1.4 billion Ammonia Plant with OCP of Morocco
- Technology: Set up a US$200 million innovation fund for investments in Information technology in Nigeria
- Agriculture: Set up a US$200 million agriculture fund with Old Mutual of SA
- Healthcare: Invested US$22million in Cancer treatment and development of diagnostic centre in Nigeria.
Expected Average Annualized Returns
US CPI + 300 BPS
Investment Horizon
Long term > 20 yrs
NSIA Funds
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Portfolio
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