Change in investment philosophy by Nigeria's sovereign fund

Home Forums General Discussion & Debate Change in investment philosophy by Nigeria's sovereign fund

This topic contains 7 replies, has 3 voices, and was last updated by KansasOyibo KansasOyibo 2 months, 3 weeks ago.

Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • #44906
    KansasOyibo
    KansasOyibo
    Participant

      Would somebody pleas PM me or post on this thread, instructions on how to hyperlink from OOL. Have tried several times to no avail so I’m copying & pasting the string below:

      https://www.bloomberg.com/news/articles/2018-06-10/nigeria-sovereign-fund-to-boost-domestic-focus-after-profit-drop


      #44912
      42nd avenue
      42nd avenue
      Participant

        Why don’t you just copy and paste the whole article?
        That’s what works for me.


        Visas,tickets,hotel and apartment bookings? Ask me! 42ndavenue1@gmail.com

        #44934
        KansasOyibo
        KansasOyibo
        Participant

          I’ll try that next time. But no comment on this topic?


          #44939
          KansasOyibo
          KansasOyibo
          Participant

            The Nigeria Sovereign Investment Authority is restructuring its portfolio to focus more on domestic investments after a drop in the currency wiped out foreign-exchange gains last year.
            “The asset allocation strategy of NSIA has been restructured to reflect an increased focus on domestic infrastructure investments with 50 percent of future contributions to be dedicated to infrastructure,” according to a statement on Monday from the fund.
            The institution, which last year had 80 percent of assets under management denominated in dollars, saw valuations decline after the central bank introduced policies that weakened the naira by at least 15 percent against the greenback. Measures like a market price-determined trading window for investors and exporters were aimed at improving supply of dollars at a time revenue from oil, the nation’s biggest export, had fallen and caused the economy to contract by 1.6 percent in 2016.
            Profit at the fund slid 82 percent last year to 22.6 billion naira ($63 million) as foreign-exchange gains plunged 98 percent. They made up more than half of 2016’s profit.
            Growing Assets
            NSIA Managing Director Uche Orji expects the government, which provides the fund’s capital, will inject additional money after oil prices more than doubled since 2016. “The expectation is that we will increase, but I don’t know by how much,” he said in a June 8 interview, referring to the asset base.
            Nigeria, Africa’s biggest oil producer, has been tapping into its oil savings. The government took $1 billion to fight Islamist militants and may draw a similar amount to fund the completion of a state-controlled steel plant. The so-called excess crude account stood at about $2.32 billion at the end of last year.
            The NSIA currently manages $2.15 billion, up from $1.5 billion at the end of last year. That includes a government deposit of $650 million approved in May to fund infrastructure development.
            The fund will increase investment in farming, health care, power and toll roads, Orji said during the interview from his office in the capital, Abuja. It already spent more than $200 million on infrastructure and farming projects that will “generate returns after at least two years,” he said.
            Orji signed an agreement Monday with Morocco’s phosphate monopoly OCP SA to build an ammonia plant in Nigeria, according to a statement from the presidency. The deal comes as the NSIA invests in the nation’s fertilizer plants, which require ammonia inputs.
            The NSIA didn’t reinvest funds that matured at the beginning of the year immediately, pending the inauguration of new directors, the managing director said.


            #44958
            42nd avenue
            42nd avenue
            Participant

              Too long a read for mine.

              Im not a financial analyst or guru so I dont want to give my poor head migraine by trying to understand all that.

              let all the critics who where complaining of declining brainy discussions on OOL come and analyse. I am proudly lazy on this. 😀


              Visas,tickets,hotel and apartment bookings? Ask me! 42ndavenue1@gmail.com

              #44963
              KansasOyibo
              KansasOyibo
              Participant

                I posted this thinking of De Onne Juju Goat. What it means is that Naija is going to invest its oil wealth (sovereign fund) in Nigerian business’s and infrastructure because they got “clobbered” on the unfavourable exchange rate of the Naira.


                #44967

                bushmanbob
                Participant

                  Another strategy….another load of waffle….it will still allow government coffers to be dipped and benefitted by the few.


                  #44998
                  KansasOyibo
                  KansasOyibo
                  Participant

                    BMB probably true. Take a “hit” because of the sad state of the currency OR let the funds evaporate into private hands. I think I’d take the currency exchange hit.


                  Viewing 8 posts - 1 through 8 (of 8 total)

                  You must be logged in to reply to this topic.