NSIA partners PFAs, Insurance coys on NIDF

By Raphael Ede


The Nigerian Sovereign Investment Authority (NSIA) has disclosed that it would participate with pension funds managers and life insurance companies to participate in the Series II round of capital raising for CHD NIDF that closes in December 2017.
An initial capital investment of N500 billion was made by NSIA in partnership with 15 other investors. The initial capital is now fully invested, generating an IRR of 22 per cent.
According to a statement from NSIA, the CHD NIDF has created a platform which allows project sponsors and off-takers to materially de-risk their projects and undertake investments that are financially sustainable and economically more robust.
NSIA’s expected participation in the Series II of CHD NIDF is a potential catalyst for CHD NIDF to crowd in and attract other investors to Nigerian infrastructure and unlock significant private sector participation in infrastructure financing by the Nigerian pension funds and other sources of long term capital.
According to the Nigeria’s Integrated Infrastructure Master Plan, the sum of $35-40 billion annual investment across sectors over the next ten years will fast track the country’s infrastructure development with at least half of its expected to be provided by the private sector.
“CHD NIDF has the potential to mobilise a meaningful proportion of this requirement, by channelling the growing pension and insurance assets as well as other long-term capital pools into infrastructure investment and financing.
“The role that institutional capital can play in infrastructure financing has been well studied for quite some time and it has become an important source of funds in the OECD markets in recent years (particularly for debt financing).
“However, in emerging markets including Africa and particularly Nigeria, there has not been much progress.
“It is in this context that the Chapel Hill Denham Nigeria Infrastructure Debt Fund (“CHD NIDF”), Sub-Saharan Africa’s first and only listed domestic currency infrastructure debt fund was conceived and a N200 billion programme was registered,” NSIA said in a statement.
NCP approves sale of Naraguta Bricks, NIMCO Terrazo, others
The National Council on Privatisation (NCP), has approved the privatisation of the remaining five subsidiaries of the Nigerian Mining Corporation (NMC).
The approval for the privatization of the firms was taken at the Councils’ According to a statement signed by meeting held on Friday, 15th December 2017.
According to a statement signed by Head, Public Communications, Chukwuma Nwokoh, the NCP approved the sale of Naraguta Bricks and Clay Company to University of Jos at the offer price of N45 million; Maiduguri Bricks and Clay Company to Gargam International Services Ltd at the bid price of N63 million; NIMCO Terrazo Company Ltd to Alheri (JJ) Nigeria Ltd at the offer price of N15,297,000; Gano Quarry to A.A Y International Mining Company Ltd at the bid price ofN21,700,000; and Kujama Quarry to Yusuf Mariri Trading Company Ltd at the bid offer of N20,550,000.
It will be recalled that Technical Committee of the NCP had opened the financial bids of the pre-qualified prospective core investors for these enterprises at a public ceremony held at the BPE Conference Room on 24th October, 2017.
They noted that the move was vital as the plant and equipment had outlived their economic life and suffered theft and vandalisation over the years.
“The 23 subsidiaries of the NMC had ceased operations since the late 1980s, as a result of which they were closed down and the staff disengaged in 2004 by the Ministry of Mines and Steel Development, but for a few that were retained to provide skeletal services,” it said.
Meanwhile, the NCP also approved the pre-qualification of Agric-Africa Consultants, Halcrow Infrastructure, CPCS, Thomas Macaulay Capital, and Feedback Infrastructure Services as transaction advisers for the partial commercialization of the River Basin Development Authorities (RBDAs). According to the Council, they should be issued with Request for Proposals (RFPs).
Similarly, the NCP approved the issuance of that RFPs to be issued to African Wildlife Foundation, IOS Partners/IWorld/Ecoplannet, and CPCS. The NCP noted that the firms have met the pre-qualifying score following the evaluation of Expressions of Interest for the engagement of transaction advisers for the partial commercialization of the Nigeria National Parks Service and concession of eco-tourism activities in three selected national parks.

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