NSIA say Nigeria’s $1bn SWF and assets intact

… deny meeting Ishiomole’s Adhoc Committee over 2nd  Niger BridgeThe Nigeria Sovereign Investment Authority (NSIA) reassured last night that Nigeria’s Sovereign Wealth Fund (SWF) and other monies under its management are intact and fully accounted for, an explanation meant to refute Adams Oshiomole’s serial allegations that a substantial part of the nation’s $1bn SWF was spent just on consultancy for the ongoing Second Niger Bridge.

NSIA, said all funds under its management have been invested profitably, realizing a Net Comprehensive Income of N15.8 billion in the year ended 31st December, 2014, compared with N505 million recorded in the fifteen months ended December 31, 2013.

In addition to the Audited Annual Reports of 2013 and 2014, the NSIA has made available its quarterly audited accounts until March 2015 open, published on its website.

NSIA’s Accounts are audited quarterly and annually by PricewaterhouseCoopers, an international firm of auditors, using the International Financial Reporting Standard (IFRS).

The seed capital of $1billion provided in 2012 has been managed in three different ring-fenced funds: 20% in Stabilisation Fund; 40% in Future Generation Fund and 40% in Nigeria Infrastructure Fund respectively. And according to tje Authority,  the assets invested in each fund are detailed in the Annual Report.

Oshiomole, Edo State Governor and Chair of the Ad-Hoc Committee of five governors which investigated the management of the Excess Crude Account and related Federation Account issues had severally accused the NSIA of spending as much as $700m on just consultancy for the second Niger Bridge which the Authority vehemently denies.

Oshiomole said his committee had invited NSIA officials who confirmed those figures.

But in a statement last night, the NSIA said they were never invited by the Adhoc committee for any presentations eventhough they are quite willing to provide details of their operations since almost three years of existence.

“The NSIA states categorically that it has never been invited by the Ad-hoc Committee on the Management of Excess Crude Account proceeds and accruals of the National Economic Council (NEC) to make a submission on its operations in the first instance. Neither did it make any presentation or submission whatsoever to the Ad-hoc Committee.

“However, the Management of NSIA remains open and available to provide details on its operations and accounts to all its stakeholders.

The NSIA also stated that they have not  made any investments in the rail sector, even though it remains an area of interest.

“And, of its total commitment to the Second Niger Bridge project, only $2.2million has been disbursed for project development related consultancy costs.

“In addition, N10.3billion was disbursed on early construction works on behalf of the Federal Ministry of Works. This has been addressed in previous press releases and briefings by the NSIA,” the statement also read.

The NSIA further explained that out of the 15 sectors of interest for the Nigeria Infrastructure Fund, the immediate areas of focus are: Motorways, Power, Agriculture, Real Estate and Healthcare.

The Future Generations Fund invests in a diversified range of assets covering public and private equities, hedge funds and “other diversifiers” using the services of best-in-class investment managers and global fund custodians. The Stabilization Fund targets the preservation of capital.

“The NSIA is an organization committed to the highest standards in corporate
governance, accountability and transparency. In recognition of this, the Sovereign Wealth Fund Institute – a global corporation analyzing public asset owners such as sovereign wealth funds and other long-term governmental investors – independently assessed the NSIA’s transparency score at 9 on the Linaburg-Maduell Transparency index, putting NSIA in the joint 2nd category overall along with other internationally respected Sovereign Wealth Funds.

” The NSIA is the only African Sovereign Wealth Fund to be so rated,” the statement further stressed.

 

Onyinye Nwachukwu