Nigeria Sovereign Investment Authority adds funds to its Infrastructure Fund

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Nigeria Sovereign Investment Authority adds funds to its Infrastructure Fund

The Nigeria Sovereign Investment Authority (NSIA) has announced that it received additional funding of $550 million last month from the federal government to help fund energy infrastructure projects.

NSIA said the funding is derived from a $1 billion Eurobond which was successfully floated in 2013. A specially-managed federal government account has been created as a vehicle to manage it, NSIA said.

Of the $550 million, $200 million will be warehoused under the Infrastructure Fund to finance gas to power investments in a co-investment partnership with private players, domestic and foreign. The objective is to generate catalytic funding for gas to power infrastructure, which will leverage on available funds to boost the development of the power sector and improve power supply.

The balance of $350 million will go into a liquidity facility which the Nigerian Bulk Electricity Trading Company (NBET) will manage on behalf of the Federal Government to boost investors' confidence in the power sector reforms.

The NSIA added:

"The objective is to generate catalytic funding for gas to power infrastructure, which will leverage on available funds to boost the development of the power sector and improve power supply."

The International Monetary Fund has estimated that Nigeria's oil and natural gas export revenue accounted for 96% of total export revenue in 2012.

In July 2013, IFC announced it would partner with the Nigeria Sovereign Investment Authority (NSIA) to develop, finance, and implement infrastructure projects that will contribute to economic growth, jobs creation and social development in Nigeria.

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