Nigeria is way behind other African countries with respect to savings into the SWF

Nearly 6 years afterward the commencement of operation by the Nigeria Sovereign Investment Authority, the entire savings into the Sovereign Wealth Fund of the country, which is at present valued at $1.5Bn, stay extremely low when compared with those of some other countries of Africa.

At the weekend, Nigeria Sovereign Investment Authority revealed via a report that while the Investment Authority of Botswana has around $4.60 Bn, the total assets under the management of Libya have around $66Bn, and the total assets of Algeria have $7.60Bn

Moreover, the report further showed that the investment authority of the country; Angola, held total assets of $4.60Bn.

The Managing Director of Nigeria Sovereign Investment Authority, Mister Uche Orij stressed on the need for the consistency in contributing to the investment. He passed the following statement: “it does not actually matter how much you commenced with, rather how consistent you are. There is a definite need to get more amount into the fund. It is rather fundamentally important to us because if all of our investments end up in the infrastructural fund, then we might run out of money and there will be squeezing of the margin as a consequence.”

In the beginning, during a presentation, the boss of Nigeria Sovereign Investment Authority stated that from 2012 – 2018, the agency reportedly had 6 consecutive years of maintaining substantial profits in all of its funds exclusive of the translation gains (FX) that valued up to $87.5 million in the last year.

He told that as there was a shift in the focus of the authority towards direct investments and towards infrastructure in Nigeria, the returns would come very late and the consequence of this would be the lack of availability of cash for driving the investments of markets and hence there will be a decline.