I intend to take the train back to Lagos to have another experience I hope I can share. There have been two Sovereign Wealth Funds in Nigeria. This fund will also attract diaspora forex inflows and other Private Equity and International Development partners who can come in as equity investors. It took approximately 1 hour 30 minutes from Ebutte Metta to Abeokuta through bridges and tunnels and we finally reached the Moniya Station in Ibadan, exactly 2 hours 30 minutes after we started the trip. I will keep you updated. 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. ... Nigeria… A share buyback improves the financial statements of the company by boosting Shareholder Equity and Return on Assets. Nigeria will soon join the economies of the world that have used their foreign reserve to set up sovereign wealth funds to create more assets for the country with foreign reserves. Due to social distancing requirements, only 2 passengers were allowed to sit in the rows of 3 and 1 passenger sat alone in the rows for 2. Nigeria’s Sovereign Wealth Fund was an upgrade on the ECA. Dangote Cement made headlines recently with news of its share buyback, but how well do you understand the concept? Sovereign Wealth Fund Institute® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. attorney leads with email and phone numbers, The Clan Place, 4th floor, Plot 1386A, Tigris Crescent, Maitama, Abuja, Nigeria, Segment percentages and amounts available on swfi.com. Market driven and out of the hands of just our characteristically hesitant govt authorities. 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. An announcement came on asking all the passengers to wait until the train hostesses (at least I hoped that’s what they are called) come to show us in which direction to alight from. So, share buybacks are a form of dividend payment to existing shareholders because going forward they get a larger share, even if profits stay the same. Activity level among domestic investors grew 71.9% m/m to N163.18bn (US$422.8m) while foreign investor transactions surged 104.0% m/m to N81.7bn (US$211.7m). This is an economic stimulus package to develop infrastructure, rather than a bailout to pay salaries. Well, the constitution of Nigeria is very clear: all revenues shall be paid into the Consolidated Revenue Fund then shared horizontally and vertically accruing to a formula specified by the Revenue Mobilization and Fiscal Commission. They are seeded  by allocating funds intended for long-term investments. The ECA technically is not backed by legal precedence nor constitutional provision. SWFs are also “investment funds” operated by governments to achieve various objectives. 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. READ: Dangote Cement shares gain N605 billion in a week amid share buyback plans, Yes, Section 161 of the Corporate and Allied Matters Act lays out the process for a company to execute an SBB, also Rule 398 (3)(xiv) of the Securities and Exchange Commission’s Rules and Regulations with Rule 13.18 of the Rulebook of The Nigerian Stock Exchange gives Regulatory backing to this action, READ: Dangote Refinery debunks online story about death in the refinery. The developer can issue commercial paper for those projects. Introduction. The rest of us had to scramble for the 8 cabs/charter taxis that were on ground. We quickly found a willing driver and agreed on a fare which we would split. I was kind of relieved my name was not called out, it felt a lot like being a kid in school all over again, but being able to buy a ticket without our names being tied to any particular ticket sort of defeated the purpose of providing identification in the first place. Nigeria has so far invested in the SWF $1 billion, then $500 million, and a further $650 million. Mr. Orji is the Managing Director/CEO of the Nigeria Sovereign Investment Authority. The SWF can create a State Infrastructure Fund, an equity fund of N1t minimum. A first-time passenger shares an interesting and captivating experience from his Lagos-Ibadan train ride. The Singapore Government owns the funds in the GIC. And to think that for most of our history, those earnings have been privatized by a select few…very sad. Another key reason for a company to do a share buyback is if it has sufficient reserves or cash and can see no other viable options. In the interim, there is a need to adjust the times for the trip to allow people arriving in Ibadan ample time to get home before it gets dark. So just to be clear, from 1960 to 2019, Nigeria has saved only $2.15 billion i.e., N752 billion. The company accomplishes this by utilizing her assets to exchange for shares from investors. Nigeria will be investing taxpayers’ cash on infrastructure that creates jobs in the very states and reflates local economies. Nigeria’s sovereign wealth fund has the important objective of addressing critical issues in relation to the Nigerian economy and is, perhaps, the most important fiscal initiative from the Nigerian federal government in the last decade. Ifeanyi Onuba, Abuja. Currently without a sovereign fund, for several years Ivory Coast has been using various pension funds for its strategic investments. Use the SWF N1t fund for equity down payment for State PPP projects. In the latest released NSE Domestic & Foreign Portfolio Investment for October, total value traded surged in line with expectations as value grew 81.5% m/m to N244.9bn (US$634.6m) in October 2020 from N135bn (US$350.6m) in September 2020. The public-spirited Laide called the local Taxi Union Chairman in Ojoo park to let him know, so he could send more cabs. However, no Federal law set up the ECA. The argument can be made as to why DCP cannot utilize the cash for the buyback to pay off debt. Nigeria earns 80% of her Foreign Exchange earnings from one commodity, crude oil, with a significant budget deficit of over 2 trillion. We note that the volume of transactions among retail and institutional investors grew 96.0% and 57.4% respectively. DCP Debt to Equity Is 0.56 compared to 0.15 for WAPCO, Dangote Debt is about N271.33b. Thus, if the benchmark price in the annual budget is $50 per barrel and crude oil is sold for $70 during the year, $20 flows to the ECA. It was established as independent agency by an Act of the National Assembly in May 2011. This was December 23rd, 2 days to Christmas and I did not fancy facing a mini rebellion from 3 young kids (with the tacit support of their mum of course), and so the decision was made to find my way to Ibadan unfailingly that. It is intend… Current Assets for NSIA is $1,781,510,000 and SWFI has 7 periods of historical assets, 18 subsidiaries, 75 transactions, 4 Opportunities/RFPs, 41 personal contacts available for CSV Export. For Nigeria, he said IMF’s reference to sovereign wealth fund focuses on the excess crude account, which requires greater transparency on the rules governing deposits, withdrawals, and investment. In Nigeria, there are two Sovereign Wealth Funds: the Excess Crude Account (ECA) and the Nigeria Sovereign Investment Authority (NSIA). Norway Government Pension Fund Global. The view is breath-taking and no words can describe it. So why does Nigeria not have significantly higher savings? It can be very lonely e.g. What happens if the company decided to use the cash in their bank account, pay off the one car loan 100%, READ: Dangote Cement market capitalization increased by 28% to cross N3 trillion mark in November. On this particular evening, the cabs were not enough and most passengers appeared to be stranded. That is why SBB tends to make the market share price go up because investors can project a bump in share prices, again note, even if revenues stay the same. 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. 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. The Political Economy of Nigeria’s Sovereign Wealth Fund. The benchmark All Share Index gained for the sixth consecutive month, up higher by 14.0%. Full disclosure before I proceed, I am a ‘Man-Chelor’ one of many scattered all over the nation and thriving so it seems. Approaching the Agege Station, the elevated view provides a panoramic view of the entire area. She sells crude oil, makes billions of dollars in USD earnings; why just $2 billion savings? Sovereign wealth funds in the Gulf, where governments are struggling to absorb the impact of lower oil prices, have been making adjustments to generate higher yields. 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. 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