Uche Orji, chief executive officer, Nigeria Sovereign Investment Authority (NSIA), has said that General Electric (GE), a global leader in infrastructure technology, services and solutions, would contribute as much as 15 percent equity in some of its projects.
Orji said this following the signing of Memorandum of Understating (MoU) between NSIA and GE to co-develop and finance infrastructure projects in the healthcare, aviation, transportation and power sectors.
Under the MoU, GE and the NSIA will seek infrastructure opportunities to cooperate, where NSIA’s role as a financial investor and GE’s role as an original equipment manufacturer will complement each other to achieve the strategic objectives of the agreement, through partnerships with credible, public and private sector entities, Orji said.
“What GE brings to the table is their technical expertise in project development,” he said. “This is part of the country to company development agreement signed between GE and Nigeria last year.”
The Nigeria Sovereign Wealth Fund (SWF) with seed capital of $1 billion (N160 billion) was set up to invest savings made from the difference between budgeted oil prices and actual market prices.
The NSIA’s investments are made through three distinct funds: Stabilisation Fund, Future Generations Fund, and the Nigeria Infrastructure Fund.
Investments made under the MoU with GE will be made by the Nigeria Infrastructure Fund (NIF).
The Future Generations Fund and the Infrastructure Fund will each account for 32.5 percent of total holdings, while the stabilisation fund will receive 20 percent of savings in the fund.
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The NIF with $325 million (N52 billion) available to invest, would be investing 100 percent of its funds in Nigeria. The fund is currently evaluating a number of infrastructure investment opportunities and is looking to begin investing by year end, Orji said.
The MoU combines GE’s technology, execution and service capabilities with the NSIA’s investment priorities in power, rail and healthcare sectors, to promote economic development and competitiveness of the Nigerian economy, Orji said.
The MoU signing event, which took place at the Wheatbaker Hotel in Ikoyi, Lagos, last week, supports GE’s commitment to facilitate the development of critical infrastructure under its investment incentive agreement with the Federal Government.
Uche Orji, managing director and CEO of NSIA, spoke at the event saying, “This marks an important milestone for the NSIA in its efforts to enhance the development of infrastructure in Nigeria and encourage foreign investment. We look forward to developing a constructive relationship with GE. We believe the combination of GE’s technical leadership and the NSIA’s financial resources and local expertise will help the NSIA achieve its ultimate objectives of prudent investment in Nigerian infrastructure”.
Speaking at the event, the president and CEO of GE Nigeria, Lazarus Angbazo, said, “This agreement with the NSIA supports Nigeria’s aspirations for economic development and transformation”.
He added that GE was very excited to partner with the NSIA to support infrastructure projects that promote the sustainable development of the country.
In fulfillment of GE’s plans to develop local partnerships across Africa, president and CEO for GE Africa, Jay Ireland, emphasised that the NSIA is a great strategic investment partner for GE in Nigeria.
He stated that “the partnership will leverage significant synergies in investment experience, execution capabilities and technical solutions to accelerate development of critical infrastructure for Nigeria’s growth”.
The Nigeria Sovereign Investment Authority (NSIA) was set up by an Act of Nigeria’s National Assembly (the NSIA Act) in 2011.
The objective of the NSIA is to promote fiscal stability, build a savings base for future generations of Nigerians and enhance the development of Nigeria’s infrastructure.
