August 10, 2018

NSIA pays $417.46m to NBET Plc

NSIA pays $417.46m to NBET Plc

Acting President Yemi Osinbajo, New NSIA Chairman, Mr Jide Zeithin accompanied by Minister of Finance, Mrs Kemi Adeosun during the Inauguration of Board of Nigerian Sovereign Investment Authority (NSIA) at the State House in Abuja.

The Nigeria Sovereign Investment Authority has paid the sum of $417.46 million to the Nigeria Bulk Energy Trading Company Plc (NBET) following the expiration of the 4 years investment term.

Acting President Yemi Osinbajo, (M) flanked Minister of Finance, Mrs. Kemi Adeosun, NSIA Chairman, Mr Jide Zeithin. Others are MD/CEO, Uche Orji, Board Member, Ms Halima Buba, Board Member, Urum Kalu-Eke, CRO/ED NSIA and Board Member, Stella Ojekwe-Onyejeli, Board Member Bello Maccido, Board Member Lois L. Malhunga-Dibie, Ause Ighodalo, Hanspeter Ackermann during the Inauguration of Board of Nigerian Sovereign Investment Authority (NSIA)

NSIA transferred the funds in three tranches as follows; US$8 million (May 2016), US$5.5 million (August 2016) and lastly US$403.96 million (July 2018).

The returned fund consists of the principal sum of US$350 million allocated to the NSIA from the proceeds of the $1 billion Eurobond issued by the Federal Government of Nigeria in July 2013 under a fund management agreement and the sum of US$67.46 million (net of fees) as interest and earnings over the investment period.

Speaking on the development, the Managing Director and Chief Executive Officer, NSIA, Mr. Uche Orji stated, that the Authority had accomplished its goals of “enhancing NBET’s liquidity position whilst enabling the company to focus on its principal function of developing the electricity market.

NSIA’s role as fund manager helped to safeguard NBET’s capital against market volatility and also conferred the agreed financial benefits on the company.”

Commenting on the transfer, Dr. Marilyn Amobi, Managing Director / Chief Executive Officer said NBET was pleased with the management of the fund over the last 4 years.

She said the NSIA preserved the capital and helped to promote NBET’s credit worthiness as an off-taker for grid injected electric energy in the Nigerian Electricity Supply Industry.