Uche Orji, managing director of the Nigeria Sovereign Investment Authority (NSIA), says the country’s sovereign wealth fund is safe with JP Morgan in the UK.
Orji said this while speaking at the 2019 leadership forum of Pilot Newspaper in Abuja on Monday.
“Risk management is something we take seriously. We keep our funds with JP Morgan in the United Kingdom. So, in terms of custody, they are safe,” he said.
“To us in NSIA, safety is more important, profitability is second. We relate with reputable retail organisations.
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“Since the global market is volatile, we are very careful on our investment in equities in the United States and Europe.
“We have to be careful about how far we stretch these funds. I would have loved that we have more than what we have now.”
He said the NSIA is investing more in infrastructure owing to crude oil price volatility.
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He advised the federal government to look beyond oil, while taking advantage of the moment and sell as much of it as it can.
“The essence of having NSIA is to prepare the country for when hydro-carbon resources are no longer pre-eminent,” he said.
“My view is that the outlook for oil is challenged, giving the growing interest in electric cars and the diversification from hydro-carbon. I will advise the government to bring out as much as it can and sell as much as it can.
“Some of the infrastructure that the NSIA is investing in are the Lagos-Ibadan expressway, Abuja-Kano expressway, Second Niger Bridge, East-West road and the Mambilla power project.
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“For instance, $10 million was invested in the Cancer Centre at the University of Lagos Teaching Hospital (LUTH). It took us six months to get to where revenue is now feasible. It will take the next six months before profit is made.”
On Thursday, the national economic council (NEC) approved an additional $250 million for the fund.
Th NSIA commenced operations in October 2012 after the signing of the Nigeria sovereign investment authority act in May 2011.
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