Chapel Hill’s NDIF profit dips to N5.3bn as weaker loan income drags Q1

The Nigerian Infrastructure Debt Fund (NDIF) reported a decline in profitability for the first quarter of 2026, as weaker interest income from infrastructure loans weighed on earnings despite stronger returns from cash holdings.

A filing by Chapel Hill Denham Investments, the fund’s manager, showed that pre-tax profit fell to N5.3 billion in Q1 2026, down from N6.2 billion recorded in the same period of 2025.

The moderation in earnings was primarily driven by a drop in interest income from infrastructure loans, which declined to N4.3 billion from N5.2 billion a year earlier. The fund also recorded a net fair value loss of N55 million on infrastructure loans, compared to a gain of N526.2 million in the corresponding period of 2025.

Despite these pressures, the fund’s income profile was partly supported by stronger returns from liquid assets. Interest income from bank deposits rose significantly by 71.02 percent to N1.52 billion, up from N890.3 million, while other income surged 153.4 percent year-on-year to N169.4 million.

As a result, total income stood at N5.9 billion, slightly lower than N6.7 billion recorded in Q1 2025. After accounting for total expenses of N581.3 million, profit before tax settled at N5.3 billion.

NDIF also declared a quarterly distribution of N4.35 per unit, payable to eligible unitholders on May 6, 2026. This represents a distribution yield of 19.30 percent, though lower than the N5.43 per unit distributed in the corresponding period last year.

On the balance sheet, total assets stood at N137.4 billion as of March 31, 2026, marginally below N137.6 billion a year earlier. Financial assets measured at fair value accounted for N85.2 billion, while cash and cash equivalents totalled N50.3 billion.

Total liabilities declined slightly to N6.9 billion from N7.1 billion, reflecting reductions in other payables and distribution obligations. Members’ funds remained unchanged at N130.5 billion, with net asset value steady at N109 per unit.

The fund maintained a diversified infrastructure portfolio comprising 17 investments across key sectors. Its largest exposure remains a 176-kilometre pipeline network, which accounts for 49 percent of total assets, followed by a marine infrastructure investment representing 22 percent.

Renewable and distributed energy assets continue to form a significant portion of the portfolio, with 458 off-grid solar sites contributing 11 percent. Telecom infrastructure, including 1,125 tower sites, accounts for 10 percent, while two independent power plants contribute 4 percent and a student accommodation asset makes up 2 percent.

At the lower end, three broadband internet sites and solar home systems collectively represent about 1 percent of the fund’s total portfolio.