The Minister of Finance, Dr. Ngozi Okonjo-Iweala, stated that the Federal Government had injected $550m into the power sector; she said this while briefing journalists at the headquarters of the Ministry of Finance in Abuja. The fund is being managed by the Nigerian Sovereign Investment Authority.
With this development, the amount in the SWF, which has three pots (Future Generation Fund, Infrastructure Fund and Fiscal Stabilisation Fund) from which investments can be anchored, has risen from the initial $1bn to $1.55bn. The minister said the $550m was taken out of the $1bn Eurobond, which the Federal Government issued few months ago.
Okonjo-Iweala said, “What we have decided to do is to infuse another $550m into the resources of the SWF for the Sovereign Wealth Fund to manage. She said $200m out of the $550m given to the NSIA would go into the Infrastructural Fund of the SWF to finance gas-to-power projects with the private sector.
The aim of this, she added, was to generate catalytic funding for gas-to-power infrastructure, which would leverage on available funds to boost the development of the power sector and improvement of electricity supply.
The balance of $350m, according to the minister, will go into a liquidity facility to be managed by the Nigerian Bulk Electricity Trading Company on behalf of the Federal Government to boost investors’ confidence in the power sector reforms.
Particularly, Okonjo-Iweala noted that an conformity had been reached with private sector partners that would enable them contribute additional $2 for every $1 invested by the NSIA.
The Managing Director/Chief Executive Officer, NSIA, Mr. Uche Orji, said the company would focus on five sub-sectors this year. They are power, health, toll roads, real estate and agriculture.
He added that many other people are interested in co-investing with us. So, basically, this will provide funding in the gas to power area for now, and we expect to drive more investment from other investors.”