ANNOUNCEMENT 12 Aug 2016

On 12 August 2016, the Nigeria Sovereign Investment Authority signed a partnership agreement with Old Mutual Investment Group and UFF Agri-Fund. The core scope of these two agreements is to establish two investment vehicles in the area of real estate and agriculture. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Nigeria Sovereign Investment Authority. NSIA and Old Mutual Investment Group announce a partnership agreement for investments in real estate and agriculture. http://nsia.com.ng/wp-content/uploads/2016/08/Press-Release-NSIA-Announces-Partnership-with-OMIG.pdf

Inception date: 12 Aug 2016 | Removal date: open ended
Still in force

Capital injection and equity stakes (including bailouts)

On 12 August 2016, the Nigeria Sovereign Investment Authority signed an agreement with the South African-based Old Mutual Investment Group. The core scope of the agreement was to establish an investment vehicle which will particularly aim to cater to the local Nigerian real estate sector through investing in commercial, hospitality and retail assets. The total financial value of the investment vehicle is estimated at USD 500 million -- although the initial capital commitment requirement for both institutions was set to be up to USD 100 million.

Furthermore, on the same day, the  Nigeria Sovereign Investment Authority signed another agreement with the UFF Agri-Fund. This agreement aimed at establishing a USD 200 million agricultural investment vehicle (with a committed capital requirement initially capped at USD 50 million for both institutions each). The core scope of this vehicle is to promote food security as well as rural economic development in the local Nigerian agricultural sector. Thus, enabling the country to capitalize on the growth opportunities embedded in its national agricultural sector.

The official source embedded in the intervention does not provide any details concerning the methods and the specific terms under which these three institutions will allocate the funding of their investment vehicle structure to beneficiaries that they would deem eligible.

The Nigeria Sovereign Investment Authority, a is a state-owned corporate institution responsible for managing funds in excess of budgeted hydrocarbon revenues. Its main mission is boosting the infrastructure and economic development of Nigeria. 

Old Mutual Investment Group is South African-based and one of the largest asset managers in the continent.

UFF Agrifund is a commercial agri-investment institution, specialising in the African continent. It is based in  South Africa, Mauritius and the Netherlands.

 

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED PRODUCTS

 
N/A