{"id":3979,"date":"2013-05-21T05:25:20","date_gmt":"2013-05-21T05:25:20","guid":{"rendered":"http:\/\/disnaija.com\/nigeria-news\/investment-of-1b-sovereign-wealth-fund-begins-in-june\/"},"modified":"2013-05-21T05:25:20","modified_gmt":"2013-05-21T05:25:20","slug":"investment-of-1b-sovereign-wealth-fund-begins-in-june","status":"publish","type":"post","link":"https:\/\/disnaija.com\/investment-of-1b-sovereign-wealth-fund-begins-in-june\/","title":{"rendered":"Investment of $1b Sovereign Wealth Fund begins in June"},"content":{"rendered":"
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Investment of the 1 billion dollar Sovereign Wealth Fund (SWF) will start in June, Mr Uche Orji, the Managing Director of the Nigeria Sovereign Investment Authority (NSIA), has sid.<\/p>\n

Orji, who disclosed his at a news conference on Monday in Abuja, said the board of directors, inaugurated seven months ago, had approved the investment allocation formula for the three funds that make up the SWF.<\/p>\n

They are; the Future Generation Fund, the Nigeria Infrastructure Fund and the Stabilisation Fund.<\/p>\n

The SWF was created by an Act of the National Assembly in 2011 with an initial portfolio of 1 billion U.S. dollars.<\/p>\n

He said the Future Generation Fund and the Nigeria Infrastructure Fund would get 325 million U.S. dollars each from the 1 billion U.S. dollars, while the Stabilisation Fund would receive 200 million U.S. dollars.<\/p>\n

According to him, the balance of 150 million U.S. dollars will be kept as unallocated to top up each of the funds as the need arises.<\/p>\n

“The approved formula is aimed at balancing the infrastructure needs of the current generation and savings needs of the future generation of Nigerians.<\/p>\n

“For its initial portfolio of investment, the board of the NSIA has approved an allocation formula to the three funds that make up the SWF.<\/p>\n

“Investment in the stabilisation fund will start in June; the future generation has the same timeline but it is a more diversified portfolio with a more complicated process.<\/p>\n

“For the infrastructure fund, a very detailed and thorough review of possible investment areas and projects is ongoing,\u2019\u2019 he said.<\/p>\n

Orji added that the investments being considered are in healthcare, transportation, water resources, power and housing.<\/p>\n

“Our focus is on investments that are both relevant to the current needs of Nigerians, profitable and sustainable at the same time.<\/p>\n

“We are ready to go anywhere to get the best deals for Nigeria,\u2019\u2019 he said.<\/p>\n

On NSIA\u2019s strategies to guarantee maximum returns for the funds, Orji said for that the stabilisation fund, the approach was to out-source it initially and eventually manage it in-house.<\/p>\n

Orji said the stabilisation fund would be invested in relatively safe liquid investment instruments such as the U.S. Treasury Bills and corporate bonds with BBB ratings.<\/p>\n

He noted that the investments would be for short duration to minimise interest rate risks.<\/p>\n

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