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.

Nigeria's Economic Goals

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$200 million

New % Allocation & Current Size**

20% allocation / US$274 million

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$892 million

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

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$921 million​

Strategic Asset Allocation / Focus Sectors
Agriculture Healthcare Motorways Power
Gas Industrialisation Financial markets Technology
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 centers 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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