No other bank in the world was asked to tender for this profitable work. However, shares shall only be purchased out of profits of the company, which would otherwise be available for a dividend. So, most times you have to wait till 1pm before it is opened for mainland traffic. The platform like most of the imposing new station was still under construction and workers could be seen hard at work as you approached the train. You can just see lush green land mixed with Rivers and Streams in all directions and very few passengers could resist the urge to take pictures on both approaches. E.g., a new housing estate is financed by a private developer, but the State counterpart funding comes from this SWF fund directly to developer. A Sovereign Wealth Fund (SWF) is a savings account created by nations to save money for the rainy day. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. The Nigeria Sovereign Investment Authority is a Nigerian establishment which manages the Nigeria sovereign wealth fund, into which the surplus income produced from Nigeria's excess oil reserves is deposited. I got home, took a bike (no the banning is more of an advisory to the Okada riders) from Akoka to Alagomeji and arrived at the train station at 14:50 to meet a large crowd outside the entrance of the Terminus (what is it with Nigerian Officials and making us huddle together in the middle of a pandemic?). The process of an SBB involves the company buying back her issued shares from shareholders at market prices, in effect the company is investing in itself. The benchmark All Share Index gained for the sixth consecutive month, up higher by 14.0%. Nigeria has increased in its Sovereign Wealth Fund (SWF) capital by an additional $250 million, bringing the total investment portfolio to about $1.750 billion since inception, according to the business news website, Global Financial Digest. I lived in Akoka on the Mainland and I could get home on time, pack and get to the station at the Alagomeji end of Muritala Muhammed Way on time to board the Train. NIGERIA SOVEREIGN WEALTH FUND: A ROAD MAP TO AVOID THE OIL CURSE. “Daddy when are you coming back home? So, the issue was who got to sit in the aisle and who sat near the coveted window seat. There are also the traders that line most of the route that passes through a market and just appear to shift just enough for the train to pass. I intend to take the train back to Lagos to have another experience I hope I can share. Excess Crude Account: A Nigerian government account used to save oil revenues above a base amount derived from a defined benchmark price. Introduction. They are not even owned by the Nigerian Federation but by the Central Bank of Nigeria, almost 70% of it is. This means, when Nigeria earns income, she simply invests a fixed percentage of the earnings. Nigeria has not saved her oil wealth, as the foreign reserves of Nigeria are not savings. READ: ABC Transport to raise N1.4 billion through rights issue. A company can also wish to improve its financial ratios. [READ MORE: Buhari meets Economic Advisory Council, as devaluation concerns loom). It is intend… With those words, my 11-year-old daughter made my mind up for me. Next, we had to wait while another Staff called out our names and you had to indicate and approach the gate for your temperature to be taken before you were allowed to approach the ticketing booths (only cash payments are allowed for now and a few folks had to scurry down to the nearest ATM to withdraw cash). [READ ALSO: President Buhari finally signs 2019 finance bill into law). The argument can be made as to why DCP cannot utilize the cash for the buyback to pay off debt. © 2008-2020 Sovereign Wealth Fund Institute. Your email address will not be published. READ: REVEALED: How Buhari refused to buy drones from Tony Blair. On the domestic front, transactions were dominated by institutional investors who traded N93.2bn (US$241.6m) while retail investors executed transactions worth N69.9bn (US$181.2m). The fx reserves represent, amongst other things, the import claims on Nigeria. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. Dangote Cement made headlines recently with news of its share buyback, but how well do you understand the concept? For those that live outside Lagos, we have had to endure a partial closure of the Third Mainland Bridge for months now and the Mainland bound lane is closed to traffic till noon each day on paper; In reality, the traffic officials have to ensure all the traffic diverted from the Island-bound lane is completely off the lane before it is opened. As we exited the dirt road from the Station, I noticed it was on the main road leading to Iseyin and Saki and led back in the other direction towards IITA to Ojoo in Ibadan. So a few points: Let’s save money before we pay NASS allocation. No affiliation or endorsement, express or implied, is provided by their use. Nigeria has so far invested in the SWF $1 billion, then $500 million, and a further $650 million. Currently without a sovereign fund, for several years Ivory Coast has been using various pension funds for its strategic investments. Look at it this way, a company that has five company cars bought with a loan must buy gas every month, budget is N50,000 or N10,000 per car. She sells crude oil, makes billions of dollars in USD earnings; why just $2 billion savings? There will only be four cars, which means the N50,000 will be divided by 4 not 5, meaning each car gets 12,500 not 10,000. Buhari meets Economic Advisory Council, as devaluation concerns loom, President Buhari finally signs 2019 finance bill into law, Africa’s richest man, Aliko Dangote, net worth drops to $15.9 billion, Dangote Cement shares gain N605 billion in a week amid share buyback plans, Dangote Refinery debunks online story about death in the refinery, Dangote Cement market capitalization increased by 28% to cross N3 trillion mark in November, ABC Transport to raise N1.4 billion through rights issue. Mr. Orji is the Managing Director/CEO of the Nigeria Sovereign Investment Authority. So what’s a ‘Man-Chelor’? Nigeria Sovereign Investment Authority (NSIA) is a Sovereign Wealth Fund located in Abuja Nigeria, Africa, and was founded in 2012. Since the Super Eagles had abdicated their God-given mandate to awaken our patriotic zeal, many Nigerians had forgotten what it feels like to feel that patriotic zeal. The NSIA operations are professional and transparent. The Singapore Government owns the funds in the GIC. The Bill to move Sovereign Wealth Fund (SWF) and the Nigeria Sovereign Investment Authority (NSIA) to first line charge on the federation account has scaled second reading at the Senate. Allow all 36 governors bring capital projects that meet guidelines and are already budgeted for and passed from their State Assembly into the fund with buy-ins and annual cash contributions. Fund Mandates NSIA Funds: Three Separate & Ring-fenced Investment Funds. All in all, it was a very smooth and enjoyable ride. Use the SWF N1t fund for equity down payment for State PPP projects. Nigeria has so far invested in the SWF $1 billion, then $500 million, and a further $650 million. That is ofc, given our 40 year old stellar(world class) production levels. CSLS is a member of the Nigerian Stock Exchange. There have been the Excess Crude Account (ECA), and the Nigeria Sovereign Investment Authority (NSIA). All Rights Reserved. However, unlike fellow oil exporter Saudi Araba, which is financing a huge part of her deficit from her SAMA Foreign Reserves Holding, Nigeria is funding her budget deficit by record borrowings. It’s been seven whole years since Nigeria set up its $1.5bn Sovereign Wealth Fund in search of better ways to manage its oil earnings. The company believes her share price is too cheap. Nigeria’s Sovereign Wealth Fund was an upgrade on the ECA. The SWF can create a State Infrastructure Fund, an equity fund of N1t minimum. Ahead, I could see other Passengers as they formed a very orderly queue to be screened before boarding the train. Restrict the spend to capital expenditure and infrastructure projects. The SBB does this by decreasing the number of shares on the stock markets, which then boost reported earnings per share. A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves. The taxpayer makes a profit. I will keep you updated. I had to leave Lagos that Wednesday back to Ibadan or else I would face some sort of revolt whenever I got home. The banker offered to manage Nigeria’s sovereign wealth fund — and Jonathan agreed. Dangote EPS (TTM) is about 14.94 and easily beats WAPCO her nearest competitor that posts an EPS of 1.28 (TTM). He brings a wealth of global experience in the financial services sector to his role as MD/CEO. They are seeded  by allocating funds intended for long-term investments. This is the difference between NSIA and ECA. Same for a road, which can be built by a private sector player and funded by adverts/tolls on the road. The developer can issue commercial paper for those projects for shares from investors for reaching.. And bathed in flood lights but rather to fund the deficit from fx! 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