The Securities Exchange Commission (SEC) in Nigeria has now approved 23 fund managers for the Nigeria Global Investment Fund (NGIF) established by the Ministry of Industry, Trade, and Investment.
The fund is geared towards revitalizing the country’s economy with the aim to attract both international and local capital into critical sectors of the Nigerian economy, including agriculture, manufacturing, energy, infrastructure, and fintech.
The fund is designed to be used for various sectors with different fund managers incharge of the management of these sectors distributed as sub-funds.
Selected Fund Managers
There was a reported total number of 55 funds manager applications but only 23 fund managers were selected by the SEC and approved by the Ministry of Finance, Trade and Investment.
The fund managers include AFC, Coronation Asset Management, Stanbic IBTC, AIICO Capital, FBNQuest Asset Management, Grrenwich, Lotus Capital, ChapelHill,FCMB Asset Management Comercio, Uhuru Capital and more.
The Division of the Funds Management Roles:
The selected fund managers will each be responsible for the specific sub-funds within the NGIF, which has been structured to into 14 distinct sub-funds covering specific sectors and also into 49 individual funds.
The 14 sub-funds under the NGIF will focus on these 14 specific sectors:
- Automotive/Light Manufacturing
- Agriculture
- Pharmaceuticals/Healthcare
- Oil & Gas
- Energy
- Fintech/Banking
- Heavy Industries
- Real Estate
- Mines/Solid Minerals
- Creative Economy/Tourism
- Aviation
- Infrastructure
- Education
- Information Technology.
Each of the managers is charged with raising an average of $500M, contributing to the overall goal of raising $10B in the first phase of the NGIF. Also these managers were assigned different sectors based on expertise.
For example, FBNQuest Asset Management and InfraCorp are focused on Infrastructure.
$5B Support from Afreximbank
The African Export-Import Bank (Afreximbank) has committed a $3 billion country risk guarantee to de-risk the fund.
The Development Finance Institution, Afreximbank also added extra $2B for direct investments into major industries.
The funding is aimed at supporting projects through tools such as project finance, equity investments, risk insurance, and advisory support.
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