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.
The Three Mandates
Objective
To provide stabilisation support in times of economic stress.
Initial %Assets Allocation & Size
20% allocation / US$200 million
New % Allocation & Current Size**
20% allocation / US$300m
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 Stabilization Fund thus has a short-term investment horizon and invests in high-quality 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$1bn
Strategic Asset Allocation / Focus Sectors.
Asset Class Allocation
| Public Equity | 25% |
| Private Equity/Venture | 25% |
| Hedge Funds | 17.5% |
| Cash & Other Diversifiers |
7.5% |
| Hedging Assets | 25% |
Mandate / Recent Investments
- Public Equity is split 67% Developed markets and 33% Emerging Markets
- Private Equity Commitment is split roughly 25% secondary and 75% primary interest.
- Absolute returns: Four Hedge fund strategies and two bespoke fund of funds mandates.
- Other diversifiers include strategies such as healthcare royalty, commodity etc.
Expected Average Annualized Returns
US CPI + 400 BPS
Investment Horizon
Long Term >20 years
Objective
Enhance the development of infrastructure, primarily through investment in domestic infrastructure projects that meet targeted financial returns.
Initial %Assets Allocation & Size
40% allocation / US$400 million
New % Allocation & Current Size**
50% allocation / US$1bn
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: Sponsored new local currency-denominated agriculture fund with 10bn seed capital.
- Healthcare: Invested US$202 million in Cancer treatment and development of diagnostic centres in Nigeria.
Expected Average Annualized Returns
US CPI + 300 BPS
Investment Horizon
Long term > 20 yrs
NSIA Funds
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