Despite COVID-19 disruptions, ‘we’re on track to report decent numbers’ – Orji, NSIA MD

 

BY BANYO TEMITAYO

THE Nigeria Sovereign Investment Authority said on Wednesday that the COVID-19 pandemic had affected projects under the Nigeria Infrastructure Fund, managed by the Agency, negatively.

The Managing Director/Chief Executive Officer, NSIA, Uche Orji, who disclosed this on an Arise TV programme, monitored by THE POINT, however, added that despite the disruptions, the Authority was on track to report “very decent numbers.”

He said there had been delays in construction, commissioning and logistics, adding that the NSIA might have lost a few months on some of the affected projects.

Orji said, “Let me deal with the issues. I want to talk about three or four impacts. First is the domestic impact. It’s been destructive. It affected some of the projects we were working on the Nigeria Infrastructure Fund which we manage. So there have been delays in construction, delays in commissioning, delays in logistics.

“We may have lost a few months on some of those projects. We are handling the Lagos-Ibadan Expressway, Niger Bridge and Abuja-Kano Road. Those have been affected by the lockdowns, restriction of movement, interstate travels.Those had a big impact on domestic investment.

“Internationally, it is first a significant response by both the monetary and fiscal policy instruments and the authorities, especially the Central Bank of Nigeria. And there has been a huge influx of liquidity.’

He noted that investment in Treasury Bill was not that rewarding anymore, saying an investor would be lucky if he got one per cent.

“Last year, it was about 13 per cent. So it’s been challenging. But the good news is that this has led to a significant improvement in the value of other assets,” he explained.

He said equity investments had done very well, noting that equity prices were higher internationally.

“So that has been good for us. It has also led to volatility, and if you are an investor or a trader, volatility is good; volatility is a time when you can make some decent returns,” the MD stated.

On the Authority’s balance, he said, “It’s been fairly good. But It’s not over; it is three weeks to the end of the year; but we are on track to report very decent numbers because we have seen benefits coming through our private equity investments, Public equity investments.

“So the year is ending fairly well, despite all the disruptions that we have seen.”