• Minister lists benefits of emergency rule
FINALLY, the Nigeria Sovereign Investment Authority (NSIA), the body to manage the $1 billion Nigerian Federation Sovereign Wealth Fund (SWF), has announced plan to kick off its activities next month.
Addressing newsmen in Abuja Monday, the Fund's Managing Director and Chief Executive Officer, Mr. Uche Orji, said under the plan, the three investment windows would receive the following allocation: Future Generation Fund, $325 million; Nigerian Infrastructure Fund, $325 million; and Stabilisation Fund will get $200 million, representing 32.5 per cent each of the first two investment windows and 20 per cent for the stabilisation fund.
The remaining 15 per cent is to be ring-fenced and kept unallocated for now and used to top up each of the Fund's investment windows where opportunities arise.
Orji spoke on the day the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, told global economic experts via teleconference that the recent declaration of emergency rule in three North Eastern states of Adamawa, Borno and Yobe portends great economic benefits to the people of the zone in particular and the Nigerian nation as a whole because before now, economic and social activities had completely collapsed due to activities of the insurgents in the affected states.
The NSIA chief executive shed more light on the investment plan of the Fund, saying "Investment in the Stabilisation Fund will start early June. The Future Generation has the same timeline but will continue till end of 2013 because it is a more diversified portfolio with a more complicated process.
"For the Infrastructure Fund, a very detailed and thorough review of possible investment areas and projects is ongoing. The investments being considered are in health care, transportation, water resources, power and housing, among others.
"Our focus is on investments that are both relevant to the current needs of Nigerians and profitable and sustainable at the same time. We are ready to go anywhere to get the best deals for Nigeria because these investment platforms are commercial and not a charity. We will therefore invest in areas that will generate high returns.
"We want to also be a credible vehicle to attract investors into Nigeria because many people out there are ready to come into Nigeria and invest, as Nigeria today is the best country in Africa with a very good international rating in terms of economic fundamentals. Investors are keen on coming but they need credible partners like us that they can trust."
Okonjo- Iweala, via a coordinated teleconferencing by Standard Chartered Bank with 102 global financial experts with interest in the Nigerian economy yesterday from across the world, reassured them that there was no pressure on the nation's economy following the emergency rule and the oil theft in the Niger Delta region.
Her words: "The emergency rule is just in three states out of 36 and the FCT. The action was undertaken to restore economic and social activities which were completely broken down, so as to allow the Federal Government properly launch its empowerment programme in the areas through creation of jobs, reduction of under-five death and other mortality rates in the areas affected as well as increase school enrolment as the terrorists had driven children off schools and were threatening teachers who could no longer teach the children for fear of death.
"Mr. President could no longer take this because of the dangers it portends for the country in future, that was why he declared the state of emergency. It is affecting a few states and we believe it is temporary, we expect normalcy to be restored soon."
Answering a question from one of the experts on Nigeria's financial condition following the drop from oil revenue amid the emergency rule, the minister said : "The fundamentals remain strong. A GDP of more than 6.5 per cent, inflation down to single digit at 9 per cent, external reserves strong at $48 billion and a fiscal deficit of one per cent of GDP.
"We do not need a supplementary budget to tackle the emergency rule because the President has, in the Budget already passed, made provisions for such contingency requirement. So we may not need any supplementary budget. However, if it becomes necessary, we could have one.
"It is true that our crude oil projection has fallen to between 2.1 and 2.2 million barrels per day from about 2.5 million barrels per day, and the price of oil at the international market has dropped, yet we are not under any stress because we have an Excess Crude Account. The Account is really playing its role now. With $5 billion in the Account, it can support us for the next five months. But before then we would have resolved the challenges and return to savings."
The Guardian