After series of rigorous application appraisal processes spanning weeks, the Federal Government has finally selected 23 fund managers for its $10 billion Nigeria Global Investment Fund (NGIF) as part of its sustained efforts to attract more investments to the nation’s economy.
The NGIF, established by the Federal Ministry of Industry, Trade and Investment, is initiated by the government to attract foreign and local capital into critical sectors of the economy, particularly agriculture, manufacturing, energy, infrastructure, and financial technology (Fintech).
The NGIF, which is structured as an umbrella fund with multiple sub-fund components that are dedicated to specific sectors, is critical to current efforts by the Nigerian government to revitalize the nation’s industrial sector and reduce the current situation of over-depending on oil revenues for governance.
Overall, 55 applications were received from potential fund managers and the evaluation processes were handled by the Securities and Exchange Commission (SEC).
At the end of the exercise, 23 fund managers were selected for the management of the fund based on their investment expertise, and adherence to Environmental, Social, and Governance (ESG) principles.
The selected firms comprise the AFC, Coronation Asset Management, Stanbic IBTC, AIICO Capital, FBNQuest Asset Management, Greenwich, Lotus Capital, and ChapelHill.
Others are Comercio, and Cordros Asset Management, DLM Asset Management, Vetiva Fund Managers, ZedCrest Investment and InfraCorp.
The selected fund managers will each oversee specific sub-funds of the NGIF, which has been structured to have 14 sub-funds and 49 individual funds.
The 14 sub-fund will focus on key sectors such as Automotive/Light Manufacturing, Agriculture, Pharmaceuticals/Healthcare, Oil and Gas, Energy, Fintech/Banking, Heavy Industries, Real Estate, Mines/Solid Minerals, Creative Economy/Tourism, Aviation, Infrastructure, Education, and ICT.
Specifically, each sub-fund is saddled with the responsibility of raising an average of $500 million with a view to ensuring that the $10 billion target of the NGIF is met in the first phase of the investment drive.
In addition to the selection of the fund managers, the Federal Government has also secured the support of some development finance institutions, including the African Export-Import Bank (Afreximbank), which has committed a $3 billion country risk guarantee to de-risk the NGIF.
