Only US$2.2 Mln Disbursed For 2nd Niger Bridge; Sovereign Wealth Fund assets intact – NSIA

Uche Orji, MD/CEO, Nigeria Sovereign Investment Authority (NSIA) (Image source: New Telegraph)

The Nigeria Sovereign Investment Authority (NSIA), managers of Nigeria’s sovereign wealth fund (SWF), says it is incorrect to say that US$700m has been withdrawn from its account for the second Niger Bridge. Adams Oshiomhole, the governor of Edo state, had said former President Goodluck Jonathan in collusion with his minister of works, Mike Onolememen, had withdrawn US$700m for the second Niger bridge project.

The authority said “all funds and assets managed by the Nigeria Sovereign Investment Authority (NSIA) are intact and fully accounted for as detailed in the Audited Financial Statement for the year ended 2014 published on March 28, 2015 (available at www.nsia.com.ng)”.

TheCable report continues:

“The Annual Report was subsequently issued by the NSIA in September, 2015. NSIA’s funds have been invested profitably, realizing a net comprehensive income of ₦15.8billion in the year ended 31st December, 2014, compared with N505million recorded in the fifteen months ended December 31, 2013.”

The fund manager said its accounts are audited “quarterly and annually by PricewaterhouseCoopers, an international firm of auditors, using the International Financial Reporting Standard (IFRS)”.

NSIA said it had not at any time been invited by the National Economic Council (NEC) to defend its operations.

The statement said: “The seed capital of US$1billion provided in 2012 has been managed in three different ring-fenced funds: 20% in Stabilization Fund; 40% in Future Generation Fund and 40% in Nigeria Infrastructure Fund respectively.

“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,” it said in a statement.

“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.”

“Furthermore, the NSIA wishes to state that it has made no investment in the rail sector, even though it remains an area of interest. And, of its total commitment to the second Niger bridge project, only US$2.2million has been disbursed for project development related consultancy costs.

“In addition, ₦10.3billion 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.”

“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 NSIA is the only African Sovereign Wealth Fund to be rated nine on the Linaburg-Maduell transparency index, in the joint 2nd category overall along with other internationally respected Sovereign Wealth Funds.

Sovereign Wealth Fund assets intact – NSIA

The Punch, on the same story, reports the Nigeria Sovereign Investment Authority has said all funds and assets managed by it are intact and fully accounted for as detailed in its audited financial statement for the year ended 2014.

The organization, which manages the country’s Sovereign Wealth Fund, said in a statement on Sunday that funds in its custody had been invested profitably, realizing a net comprehensive income of ₦15.8bn in the year ended December 31, 2014, compared with ₦505m recorded in the 15 months ended December 31, 2013.

In addition to the audited annual reports of 2013 and 2014, the NSIA stated that it had also made available its quarterly audited accounts until March 2015 on its website, adding that the accounts were being audited quarterly and annually by PricewaterhouseCoopers, an international firm of auditors, using the International Financial Reporting Standard.

According to the NSIA, the seed capital of US$1bn provided in 2012 has been managed in three different ring-fenced funds of 20 per cent in the Stabilization Fund; 40 per cent in the Future Generation Fund; and 40 per cent in the Nigeria Infrastructure Fund.
It added, “The NSIA states categorically that it has never been invited by the Adhoc Committee on the Management of the Excess Crude Account proceeds and accruals of the National Economic Council to make a submission on its operations in the first instance.