This is according to Aminu Umar-Sadiq, NSIA Managing Director & Chief Executive Officer who spoke to the media on Thursday, on the Authority’s recently released financial result.

NSIA’s total Comprehensive Income surged 1,122% to ₦1.18 trillion in 2023, relative to ₦96.96 billion reported in 2022. Total Comprehensive Income (excluding foreign exchange gains) equally rose from ₦21.39 billion in the previous year to ₦164.69 billion, marking a 670% growth.

Presenting the Authority’s 2023 financial performance to the media in Abuja, Umar-Sadiq explained that the renewed focus of the Authority which manages the country’s $2.5bn played a key role in delivering such impressive results.

According to him, the focus area on efficient balance sheet management ensured the timely availability of both local and foreign currency investments, thereby optimizing currency utilization. This strategy also ensured optimal asset allocation and utilization and retained a substantial portion of the balance sheet in foreign currency.

Also, with the focus on sustainable earnings, the NSIA directed efforts towards swiftly stabilizing infrastructure projects. This, according to him, entailed engaging with instruments that guarantee consistent and reliable returns, further bolstering the Authority’s financial stability.

Umar-Sadiq further disclosed that the NSIA pioneered investment initiatives, particularly in environmentally sustainable ventures, with notable successes achieved through partnerships in green climates with organizations like CarbonVista.

It also prioritized cost efficiency, striving to transition towards digitized, streamlined operations that effectively addressed prevailing challenges. This shift, he said, optimized resources and enhanced operational effectiveness, further contributing to NSIA’s “excellent” financial performance.

As contained in its financial statement, NSIA in the last 10 years has continued to show resilience and growth in asset performance while creating value within the economy. Its net assets have grown from ₦156 billion ($1 billion) in 2013 to ₦1.189 trillion, an equivalent of $2.47 billion as at 2023.

In 2023 alone, Total operating income rose substantially from ₦101.1 billion in the previous year to ₦1.176 trillion, representing 1,064% year-on-year increase.

NSIA strategically optimized its asset allocation, resulting in a Total Comprehensive Income of ₦1.184 trillion for 2023 – a remarkable 1,122% growth from ₦96.96 billion in 2022.

Amidst a challenging global financial landscape, the Authority’s core Total Comprehensive Income (excluding foreign exchange gains) rose from ₦21.39 billion in the previous year to ₦164.69 billion, marking a 670% increase attributable to the Authority’s robust strategic asset allocation and adherence to best-in-class enterprise risk management processes.

“I think a combination of our strategic and tactical activities is what helped us transition from N96 billion in net returns in 2022 to over N1 trillion in net returns in 2023,”  Umar-Sadiq told journalists.

“Whilst of course there is a component of foreign exchange gains in this, you will see that even on the core basis, we actually grew our returns by over 650 percent, to 160 billion,”  he added.

Besides, the NSIA embarked on several infrastructure-focused activities in 2023, and “largely achieved what it set out to do in the financial year.”

Some of those projects include the 10 MW Kano solar project, which is the largest grid-connected solar PV plant in Nigeria; the launch of strategic platforms including $202m MEDSERVE and $63m Equilease; $50mn launch of Renewables Investment Platform for Limitless Energy (RIPLE) and a strategic partnership agreement with the IFC, among other initiatives.

In addition to its financial performance, the NSIA boss informed that the Authority emerged at the top of the 2023 Global SWF Governance, Sustainability, and Resilience Ranking, after scoring a perfect 100% with esteemed SWFs like Temasek and NZ Super Fund.

Umar-Sadiq explained that the GSR Scoreboard analysis reflects the Authority’s substantial progress from a previous score of 84%, showcasing its enhanced sustainability practices, including improved policies, a robust framework, climate investment leadership, and impactful reporting.

For 2024, the Authority will lay strong emphasis on enhancing fiscal responsibility within the institution to maintain stability and credibility, as well and attracting foreign investments.

The MD was confident of an excellent financial performance in 2024, noting over $500 million in investments in domestic infrastructure, which has created some 545 direct and indirect jobs.

He also underscored commitment to operationalizing existing platforms to effectively attract foreign capital to complement its existing resources and emphasized the need for scalability to maximize the Authority’s impact within its operational sphere.

NSIA strategic priorities in 2024 are outlined in four key areas: operationalizing its subsidiaries; having a broad and ambitious digitization strategy and cost-efficiency strategy in place; focusing on pioneering initiatives in new sectors, driving innovation and strategic growth to stay at the forefront of economic development; and building strong relationships with regulators, strategic partners, and development finance institutions (DFIs).

Bisi Makoju, NSIA Executive Director and Chief Operating Officer, further shed light on the organization’s financial performance, emphasizing efficient fiscal management within the Authority,

According to her, a significant indicator of NSIA’s fiscal discipline is its core income ratio analysis for the year 2023, which showed a remarkable drop to 8.6%, as against 30.2% in 2022. “This signifies that NSIA is spending significantly less than what it is earning and keeping expenses below the inflationary rate,” she emphasized.

“Despite a challenging economic environment with inflation reaching approximately 28% by the end of 2023, the Authority’s year-on-year change in expenses stood at approximately 18.4%.”

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The Senate Committee Finance made this request during a meeting with representatives of the Managing Director of the NSIA, Aminu Umar-Sadiq, in Abuja.

The Chairman of the Committee, Senator Sani Musa, said the request has become imperative as there was little or no information on the operations of the NSIA.

In his contribution, a member of the committee, Senator Adamu Aliero, said the only “visible project” that could be identified with the agency was the Abuja-Kaduna Expressway, still under construction.

He added: “You have received $1.5billion to invest. How are you using the money?

“Give us the details of all your investments, the dividends and so on. We want to see the details.”

Senator Ned Nwoko supported  Aliero’s position ans sought to know why the NSIA did not consider the 2nd Niger Bridge as a priority project for investment.

Nwoko stated that though the main bridge project had been completed, the bridge could not be put to use by motorists due to the absence of required bypasses.

“The 2nd Niger Bridge has been built but not being used because of the lack of bypasses.

“Why can’t you fund the bypasses? The NSIA can fund the  bypasses, especially on the Asaba end. The bridge is now wasting at a loss to the government.”

The committee directed the agency to supply the information at the next adjourned date of the committee, where Umar-Sadiq is expected be present.

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Umar-Sadiq spoke Tuesday during House of Representatives’ Ad Hoc Committee probing NSIA.

He reiterated that NSIA has a robust investment portfolio in critical sectors as agriculture, healthcare, finance, tech, innovation, and power.

In addition, he said NSIA developed institutions and platforms to improve the financial market ecosystem, and a 10-MW solar power project expected to facilitate over 500 direct and indirect jobs.

Umar- Sadiq noted net assets of NSIA grew from N156 billion in 2013, to N1. 017 trillion end of 2022, and remained profitable in its 10 years, and net contribution grew from $1 billion to $2.27 billion as at December 2022.

Lateef Shittu, representative of director general of Nigeria Governors Forum (NGF), said local governments were stakeholders with states, and represent a significant holding.

Shittu affirmed the collaboration of the forum with NSIA, saying they were satisfied with the interactions and clear about objectives of the authority.

He said in 2022, the governors requested a presentation on operations of NSIA from the management, adding “we are satisfied with the presentation and what was being done”.

He reiterated that, “every single project executed by the NSIA is located within a local government, so they are beneficiaries of the NSIA projects.”

The Chairman of the Committee, Hon. Ademorin Kuye, said the objective of the investigation was to ensure that the statutory provisions of the law establishing the Authority was adhered to.

He stated that the House wants to be able to have answers to questions from Nigerians on how the funds of the agency were being managed, adding that if the need arises, the committee would visit sites of projects being handled by the Authority to ensure value for money.

The Committee commended management and staff for the detailed responses that were provided which alludes to its high level of governance and transparency.

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The Managing Director, NSIA, Uche Orji, made this known on Monday in Abuja while addressing the newsmen on the financial performance of the agency in 2018.

The presentation made by Orji showed that the profit of the authority had more than doubled when compared with the N22.55 billion recorded in 2017 financial year.

Orji said: “Despite concerns over international trade flows, slow growth in key economic indicators and increased volatility across financial market, the Authority’s investment strategy proved robust.

“Total comprehensive income, including the impact of foreign exchange gains, was N44.34 billion which shows an increase from the N27.93 billion recorded in 2017.

“Also, total assets recorded a growth of 16 per cent to N617.7 billion at year end, showing an increase when compared to the N533.88 billion of 2017.

“The return on capital employed on the core funds of the NSIA is as follows; Stabilisation Fund, 7.2 per cent, Future Generation Fund, 8.3 per cent and Nigeria Infrastructure Fund, 7.7 per cent,” he said.

Giving a review of the Authority’s activities, Orji said the NSIA was helping to reduce input-induced food price inflation through the Presidential Fertiliser Initiative (PFI).

He said that under the PFI in 2018, an additional 5.5 million bags of NPK 20:10:10 fertiliser was produced and sold in Nigeria bringing the total project output from inception to date at over 12 million bags.

In addition, Orji said that the NSIA disbursed $650 million for infrastructure construction projects under the Presidential Infrastructure Development Fund (PIDF)

Some of the projects include the Lagos-Ibadan Expressway, Second Niger Bridge; and the Abuja-Kaduna-Zaria-Kano Road.

Orji said that till date, the NSIA had disbursed N77.6 billion under the PIDF programme.

He said other projects being undertaken under PIDF included Mambilla Hydro-Power Project and East-West Road.

The NSIA boss also described as successful, the NSIA investment in the health sector, which had led to the establishment of a world class cancer center at Lagos University Teaching Hospital.

He said that the Cancer Centres at Aminu Kano Teaching Hospital and Federal Medical Centre Umuahia would be commissioned in second quarter, 2019.

Orji said that going forward, the Authority would increase its focus on domestic infrastructure projects, especially in agriculture, healthcare and infrastructure enabling financial institutions.

“The deployment of the Presidential Infrastructure Development Fund will play a key part of our infrastructure investment strategy for the year.

“Healthcare remains a focus area going forward with the implementation of next phase of diagnostic and treatment centres.

“The Board has also approved Gas industralisation as an area of focus. Increased focus and capital deployment in Infrastructure is likely to affect future returns,” he said.

The NSIA boss also used the opportunity to clarify allegations on the illegal employment of Aisha Abba Kyari, who is the daughter of President Buhari’s Chief of Staff as an Assistant Vice-President at the Authority.

Orji said Aisha’s selection for the post was based on her academic qualifications, international and local work experiences.

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The Cancer Treatment Centre was structured under a public-private partnership (PPP) arrangement between the Nigeria Sovereign Investment Authority, NSIA and the LUTH.
The project is an $11 million investment for the rehabilitation, equipping and operation of an existing cancer centre co-located in LUTH, which will provide advanced radiotherapy and chemotherapy treatment services.

Buhari said 40 per cent of funds spent by Nigerians on medical tourism was spent by patients seeking treatment for cancer. “Despite having an increasing number of citizens suffering from cancer, we until now, had only two working radiotherapy machines in the country.

“Working through the Nigerian Sovereign Investment Authority and the Lagos University Teaching Hospital, we utilized a PPP model that unlocked investment capital to directly address this issue.

“We will replicate this model across the country to bring quality, first class healthcare services to every Nigerian who needs it.

“In the case of the Cancer Centre, we can measure this value in currency, but we prefer to measure the value in terms of its social impact.

“The number of lives of Nigerians that will be saved and positively affected as well as the impact of capacity building for our people,” he said.

Buhari said that over the coming months, the NSIA would also commission two Modern Medical Diagnostic Centres.

“The two centres will be co-located in the Aminu Kano Teaching Hospital (AKTH), Kano State and the Federal Medical Centre Umuahia (FMCU),Abia State.

“Our goal today is not simply to celebrate and applaud the culmination of months of hard work to achieve this objective.

“Neither is it solely to revel in the successful completion of the most modern and best equipped Cancer treatment centre in West Africa.

“Indeed we are proud, but we recognise that this modest effort to address the gaps in our tertiary healthcare system is alone insufficient to address all the challenges faced by the sector.

“No one ever prays to be diagnosed with Cancer, but if they are, what we have made possible here today is the hope of a true chance of survival.

“We will continues to push hard to raise awareness about cancer, educate our people, facilitate early diagnosis, but today, many more Nigerians will now have access,” he said.

Uche Orji, the Chief Executive Officer of NSIA, said that the NSIA’s strategy in healthcare was to focus on areas of need within tertiary healthcare that have led to medical tourism to countries in Europe, East Asia and the Middle East.

According to him, he identified Oncology, Nephrology, Cardiology and Orthopaedics as areas of need that had led to medical tourism.

“In a 2012 study by the Ministry of Health, Nigerians’ spend on outbound medical tourism was reported to be about $1 billion a year, with cancer management accounting for more than 40 per cent of this spend.

“Furthermore, in the course of our research, we discovered that of the eight facilities in the country that had radiotherapy machines installed, at the time, only two were functional.

“More so, the two functional machines were frequently broken down causing interruptions to patient treatment.

“NSIA in 2016 announced its investment strategy in healthcare which was to partner with teaching hospitals and federal medical centres in a public private partnership to develop areas of excellence in healthcare.

“Following months of project development, the NSIA-LUTH Cancer Centre was built in a record time of nine months and at a cost of approximately $11million. And once it’s fully operational, this will be the largest outpatient cancer treatment centre in West Africa,“ he said.

Orji said that the centre is expected to treat as many as 80 and perhaps up to 100 patients a day. “It is small in the context of the needs we have in Nigeria, but it’s a start,“ he said.

Prof. Chris Bode, the Chief Medical Director of LUTH said that the Centre has three Linear Accelerators, a Brachytherapy Machine, a Treatment Planning System and a Chemotherapy Suite.

He said the equipment are also manned by highly qualified Nigerian Oncologists and competent team.

“The Centre is world-class and no Nigerian cancer patient needs travel abroad again to receive treatment easily obtainable at this centre.

“The centre will also have a training school for oncologists and allied specialities on the cancer management team, so that other institutions can also benefit.

“We are currently training our staff to effectively man the centre which should be running fully as soon as all necessary mandatory operational certifications are obtained in the next six weeks,“ he said.

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The legal hitch follows moves by some forces in government to sideline the local content partner, Sunrise Power and Transmission Company Limited.

The company was awarded the Build Operate and Transfer (BOT) contract for the project in 2003 but the issues surrounding the project are now before the ICC Arbitration Panel in Paris.

Although an amicable resolution of the legal dispute has been proposed, it was learnt the project might be stalled unless President Muhammadu Buhari intervenes in the crisis.

The Federal executive Council (FEC) on August 30, 2017 approved the award of the project to Messrs China Gezhouba Corporation, Sinohydro Corporation Limited and CGOC Group Limited.

In November 2017, the Minister of Works, Housing and Power, Babatunde Fashola signed the contract for the 3,050 megawatts hydro power project.

During a state visit to China on September 7, 2018, the President of CGCC, the construction company, Prof. Lyu Ze Xiang, told the President that “our target is to commence the project early next year.”

But while the President is looking forward to the take-off of the project, the legal dispute before the international arbitration panel is yet to be resolved.

Sensing a likely legal crisis, the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, n a July 24, 2017 letter to the then Acting President, Prof. Yemi Osinbajo, recommended that the interest of the local partner, Sunrise Power and Transmission Company Limited, should be accommodated.

In a memo, the AGF said: “Sunrise Power and Transmission Company Limited should be engaged as Local Content Partner on the Mambilla Project as a means of accommodating its prior contractual interests on the project.”

But instead of complying with the advice of the AGF, some government officials had been trying to shut out the local content partner.

The power-play in government over local content partner has created a major hurdle for the Chinese consortium.

A source said: “In spite of the fact that this is a signature project for this administration, some government officials do not want the construction of the Mambilla Hydro-Power Project to take off early 2019 as contained in the timeline.

“And with the fresh legal dispute over the project before an international arbitration panel, the government may find it difficult to finance the plant. By its funding module, the project would be jointly financed by the Federal Government and the China Export Import (EXIM) Bank. While EXIM bank will provide 85 per cent of the cost, the Federal Government is to bear 15 per cent.

“Unknown to the President, there are vested interests in government trying to drag the nation into unnecessary legal web which might delay the construction of the new plant.

“Some of these power brokers wanted some of the billions of dollars meant for Mambilla Project to be diverted to a 1500MW solar power project.”

As at press time, it was gathered that the Federal Government was yet to reach an amicable resolution with Sunrise Power and Transmission Company Limited and Sinohydro Corporation states at the arbitration panel in Paris.

In a November 18, 2018 petition to President Buhari, the Chairman/CEO of Sunrise Power and Transmission Company, Leno Adesanya, exposed the intrigues behind the project and the need for a presidential intervention.

The petition to President Buhari was entitled “Re: Proposed Amicable Resolution in respect of ongoing $2.3 billion ICC Arbitration in Paris between Sunrise, Federal Government of Nigeria (the “FGN”) and Sinohydro Corporation states.”

His petition reads in part: ”As a result of numerous attempts to fraudulently divert billions of dollars from the 3050MW Mambilla hydropower project (the “Project”) to a 1500MW solar power project, the execution of the 3050MW Mambilla hydropower project has refused to take off the ground.

“The reason being, China Exim bank’s insistence of compliance with due process, and terms of the November 2017 EPC contract signed with the Chinese JV Partners.

“Ironically, this fraudulent multi-billion dollar solar power project was rejected by the Federal Executive Council (the “FEC”) on the 16th of August 2017 when it was fraudulently packaged with the Mambilla hydropower project as one project.

“The Solar Power project was submitted without any Feasibility studies, Environmental Impact Assessment (EIA) reports, NASS budget approvals, and without any bid process (due process) in the selection of the proposed EPC contractor(s) for both the 3050MW Mambilla hydropower project and the 1500MW Solar Power project.”

”Your Excellency’s commitment to expeditiously execute the Project in June 2015 was communicated by the Honourable Attorney-General of the Federation, Mr. Abubakar Malami SAN (the “HAGF”) to the Honourable Minister of Power, Works and Housing (the “HMOPWH”) Mr. Babatunde Fashola SAN on the 20th of May, 2016; when the HAGF directed the HMOWPH to comply fully with all existing agreements between the Federal Government of Nigeria (the “FGN”) and Sunrise; basically the out-of-court Settlement, and the General Project Execution Agreement(s) of November 25th 2012.

”In view of the Presidency’s invitation for CGCOC (formerly CGC) participation in the Project, we petitioned Your Excellency, HMOPWH, and HAGF in April 2017 with evidence of previous corrupt practices CGC in May 2007 when they paid millions of dollars to a very senior Presidency official to enable CGGC/CGC sign a $1.46 billion Mambilla Civil Works contract on the 28th of May, 2007, as one of the $16 billion Nigerian Integrated Power Project (the “NIPP”) power projects.

“CGC made this confession to then President Umaru Musa YarAdua GCFR in February 2008 while on a State visit to China. The senior Presidency official admitted to then President Yar’ Adua of collecting the bribe, which led to the termination of the contract, and removal of the official from the Presidency in 2008.”

Adesanaya gave insights into the latest crisis impeding the hydro-power project. He said on the 22nd of May, 2017, a Presidency official instructed the Ministry of Power, Works and Housing(HMOPWH) to “remove Sunrise from the Mambilla hydropower project, and instructed that CGGC, CGCOC and SINOHYDRO would execute the Project”.

He added that “Bearing in mind that Your Excellency was on medical vacation in the UK, and Professor Yemi Osinbajo SAN GCON was the Acting President.

“On the 24th of July, 2017, the HAGF reacted to our petitions by advising then Acting President Prof. Yemi Osinbajo SAN GCON that the HMOPWH should sign the $5.8 billion EPC contract with Sinohydro and CGGC (50/50), with Sunrise as the Local Content Partner to the Project.

On the 10th of November, 2017, the HMOPWH signed the $5.8 billion Mambilla hydropower EPC contract with CGGC, CGCOC and SINOHYDRO.

“As a result of this illegality, we commenced arbitration proceedings against the FGN and SINOHYDRO Corporation of China at the International Chamber of Commerce (the “ICC”) in Paris.

In February 2018, Sinohydro (owned by the Chinese Government with over $3 trillion in foreign reserves) filed a request for an amicable resolution with Sunrise.”

Adesanya also tabled four suggestions before the President in order to protect the project from being stalled by legal dispute.

He said: “In the light of the recent irreversible arbitration ruling delivered against the FGN in the UK and the United States for Nigeria to pay at least $9 billion in damages to Process and Industrial Development Company in the UK (the “P&ID) for breach of contract, our lawyer, Mr. Femi Falana (SAN) held discussions with Your Excellency in July 2018 to explore avenues for an amicable resolution, and prevent another $2 billion in damages against the FGN.

“As a result, Your Excellency expressed your full support and approval for expeditious settlement of the dispute with Sunrise, and if possible, “in line with Your Excellency’s directive to HAGF in 2016″

“In the light of the above, and the need to urgently communicate a settlement to the Paris Arbitral panel, we hereby seek Your Excellency’s approval for the following Prayers:

Compliance with the 24th July legal recommendation of HAGF to the then Acting President Prof. Yemi Osinbajo SAN GCON, with the signing of a new $5.8 billion EPC contract between SUNRISE/CGGC 50%, SUNRISE/SINOHYDRO 50%, with SUNRISE as the exclusive Local Content Partner to the Project.

* Immediate release of 15% (US $870,000,000.00) Counterpart funds to China Exim bank on behalf of SUNRISE, CGGC and SINOHYDRO or

* Approval for the Nigerian Sovereign Investments Authority (the “NSIA”) to immediately negotiate our Paris arbitration claims, and make payments on terms and conditions that are mutually acceptable.

* A meeting with Your Excellency, and respectfully, the Vice President, HAGF, NSIA HMOPWH, ICPC, EFCC, and the Chinese JV Partners, and the Chinese Ambassador to Nigeria, to discuss the corruption and fraudulent practices delaying the execution of the project, bearing in mind the Chinese zero tolerance for corruption, and Your Excellency’s strong and against corruption.”

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Senior Special Assistant to the President (Media & Publicity), Mallam Garba Shehu disclosed this at the weekend on Hannu Ya Dawa, an audience participation programme on FRCN Kaduna.

Also, the presidential aide said the 11 fertilizer blending plants in the country will be increased to 18 by the end of the year; which will, in turn, provide direct employment to no fewer than 50,000 Nigerians.

Shehu said the projected delivery of the commodity (4 million bags of fertilizer) by December is in addition to the six million bags of 50kg fertilizers already sold to farmers since the initiative commenced early this year.

“The problem of the shortage of fertilizers and its attendant high cost plaguing the nation’s agricultural production, seemingly intractable for decades, have been resolved following the successful execution of the mandate of the PFI.

“Since the implementation of the Initiative, the six million 50kg bags of NPK fertilizers were purchased by State governments and agro-dealers across the country,” he said.

The presidential spokesman noted that the production of locally-blended fertilizer had saved the Federal Government about $150 million this year, hitherto spent on foreign exchange; and N60 billion in budgetary provisions for fertilizer subsidy.

He added that the successful implementation of the PFI had made fertilizer available to Nigerian farmers at affordable prices and in time for the 2017 wet season farming.

“Last year, Daily Trust newspaper reported that a bag of 50kg NPK fertilizer was sold at N10, 900 in Benue State. Today the same commodity is being sold at about N6, 500 in different locations across the country, while the government-approved price is N5, 500.”

Quoting the same newspaper report, Mallam Shehu noted that a bag of maize which was sold at N21, 000 last year is currently being sold at an average of N10, 000.

“This is an indication that the Initiative has enhanced food security as a result of the increase in food production. There is also a reduction in food-induced inflation while economic activities across the agriculture value chain are very impressive,” he said.

The objective of the PFI, which was approved by President Buhari in December 2016, is to procure the four constituent raw materials for Nitrogen, Phosphorous and Potassium (NPK) fertilizer – locally-sourced Urea, locally-sourced Limestone granules (LSG), Diammonium Phosphate (DAP) imported from Morocco, and Muriate of Potash (MOP) sourced from Europe – and blend these locally to produce NPK Fertilizer at a much-reduced cost.

The Presidential Fertilizer Initiative is being executed by the Nigeria Sovereign Investment Authority (NSIA) through a Special Purpose Vehicle that will roll out the one million tonnes of NPK Fertilizer in five[contact-form][contact-field label=”Name” type=”name” required=”true” /][contact-field label=”Email” type=”email” required=”true” /][contact-field label=”Website” type=”url” /][contact-field label=”Message” type=”textarea” /][/contact-form] batches of 200,000 metric tonnes each.

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The Fund’s Managing Director, Uche Orji disclosed this in Abuja on Monday, while receiving the Minister of Information and Culture, Alhaji Lai Mohammed, who paid a courtesy visit to the Authority.

“We have delivered over 6 million bags of NPK 20:10:10 at 30% below the market price without subsidy. In the process of that, we have also created over 50,000 jobs. We have rehabilitated 11 blending plants that had either been under capacity or moribund,” he said.

He said six other moribund fertilizer blending plants across the country are at various stages of rehabilitation and will come on board by the end of the year.

Orji said through this intervention, the Fund has saved the
government over N50 billion in subsidy this year, based on the fact that the government used to subsidize fertilizer to the tune of N6,000 per bag.

The NSIA boss said the fertilizer initiative of the Authority also
assisted the government to conserve foreign exchange through the substitution of 65% components of the fertilizer with local content.

According to him, the Fund eliminated fertilizer subsidy and middlemen in the distribution process by putting whistle blower telephone numbers on every bag to guard against arbitrary increase in the price of the commodity.

While commending the Fund for its intervention in the critical sectors of the economy, the Minister said the present administration has succeeded in breaking the jinx in fertilizer supply to farmers.

“You have done three major things here. One is that you have crashed the price of fertilizer and this in itself is very significant because what we have today is that for the cost of one bag of fertilizer, you can get two bags of fertilizer.

“When you now look at the improvement in the type of fertilizer that you are now making available, it has helped us to increase yield from about 2 metric tonnes per hectare to 7 metric tonnes and I think in some areas up to 11. More remarkable to me is that we have been able to demystify the fertilizer conundrum,” he said.

Alhaji Mohammed said the intervention by the Fund has also eliminated corruption and scandals in the procurement of fertilizer.

The Minister observed that the interventions and the laudable efforts that the Fund is making, especially in the area of Agriculture, infrastructure and health, are ground-breaking and pledged to partner with the Fund in order to publicize its activities.

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Chairman of the committee, Alhaji Mohammed Badaru Abubakar who is also the Governor of Jigawa State made this statement when he visited the Indorama world-class fertilizer plant in the company of the President of the Fertilizer Producers & Suppliers Association of Nigeria (FEPSAN), Thomas Etuh and the Managing Director of the Nigerian Sovereign Investment Authority (NSIA), Uche Orji.

Alhaji Abubakar said he was impressed that Indorama has fully keyed into the Presidential Fertilizer Initiative whose goal is to help the Federal Government to achieve higher food production and food security in the country.

A statement issued by the head of Corporate Communications of Indorama-Nigeria, Dr Jossy Nkwocha, said that “In supporting the Federal Government’s Fertilizer Initiative, Indorama will this year supply 360,000 metric tons of Urea to Fertilizer blenders, who in turn will produce NPK fertilizers and supply at cheaper price to the farmers across the federation.”

According to him, Managing Director of Indorama-Nigeria operations, Manish Mundra, received the team and conducted them round the Ammonia, Urea and Utilities plants which have capacity for 1.5 million metric tons of Urea fertilizer per annum and the largest single-line Urea plant in the world.

“At the Bagging section of the plant, the Presidential team inspected the specially packaged granular Urea bags meant for delivery to the blenders.”

Mundra informed the team that the Ammonia section of the fertilizer plant is presently undergoing scheduled maintenance shutdown to optimize its ammonia production and reduce energy consumption, activities that will enhance Indorama’s participation in the Federal Government Fertilizer Initiative.”

“The shutdown of the Ammonia plant is part of Indorama’s excellent maintenance culture and innovation, and the plant will be re-started on 24th February,” Mundra assured.

Governor Abubakar said he was quite impressed with Indorama’s operations especially in helping the Federal Government to achieve its agricultural transformation agenda. “I must say that I am impressed that Indorama is supporting the Federal Government initiative. This is one of the initiatives to bring down the cost of food items in the country”, the Chairman said.

President of FEPSAN, Etuh, also commended Indorama for keying into the Federal Government Initiative and promised that members of the association, especially the blending plants will make the best use of the opportunity to facilitate greater crop harvest this year.

Indorama has supplied about 250,000 metric tons of granular Urea fertilizer to farmers nationwide since June 2016 when it commenced production. Through import substitution, the company has helped the Federal Government to save foreign exchange and also earn scarce forex through the export of its surplus production after meeting domestic demand.

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Reasons ranging from the actual cost of the bridge, non- issuance of the Certificate of Compliance, non-compensation of the host community and non- adherence to due process in the award of the contract were also responsible for the stoppage.

The Director-General of Infrastructure Concession Regulatory Commission, ICRC, Aminu Diko disclosed this after a private meeting with President Muhammadu Buhari at the Presidential Villa, Abuja.

Already, there is a raging controversy over the actual cost spent on the consultancy for the bridge, with the allegation by Edo State governor, Comrade Adams Oshiomhole, that N140 billion was spent on the consultancy for the Second Niger Bridge.

The allegation which the Managing Director of the Nigeria Sovereign Investment Authority, NSIA, Uche Orji, has expressed shock over, stating that only $2.21 million (about N340 million, using the then exchange rate of N154/$1) was spent on the consultancy for that project.

Noting the importance of the road that linked the South East and South West, Diko, however, asked the people to be patient with the government.

“The Second Niger Bridge is one of the projects that we discussed with the President. We did say it is in the commission for regulatory oversight. We have been discussing the transaction with the Ministry of Works.

“But before it can be finalized, the commissioner has to give a Certificate of Compliance, but we have not even done that because we have seen a lot of issues that we are uncomfortable with. We are talking with the Ministry of Works for them to correct them.

“The communities around that area are clamouring that their lands have been taken and that they have not been compensated adequately. As a matter of fact, we got a letter from Onitsha Traditional Council complaining that they have not been adequately represented in this transaction.

“We are not saying that something has not been done properly, but we need to be convinced that these few problems are sorted properly.

“We will also talk about the actual cost of the bridge, eventually we have asked the ministry of works to review it and justify how much the project should cost. For the Second Niger Bridge, there will be a lot of studies that need to be done on the integrity of the bridge itself which will take time. It is not something we can see being completed in the next six months.

“I will like us to be patient about it. We know that it is a critical road. We also know how Nigerians suffer during festive holidays and we hear people sleep on that old bridge. The time has come for us to bring succour Nigerians.”

The DG said he was not in the know of the present status of the project, stating that “I have no idea about the status of the project. What I need to tell Nigerians is that PPPs take a long time to mature. There is a difference between the project which you have money in your pocket or in your account and you just bring it out and tell somebody to go and do it.

“But when it is PPP transaction, you first engage a number of people. You have bankers, lawyers, engineers. They all collaborate to form consultancy for that transaction,” he said.

According to the NSIA Managing Director, Uche Orji, the cost of consultancy for the Second Niger Bridge was less than one percent of the cost of the project which was way below global standards.

A document he made available to Vanguard, Wednesday, indicated that “the project was initially estimated to cost N108 billion excluding duties and VAT, (if duties and VAT are included, the project cost is N117.9billion). This was equivalent to $700 million at the then prevailing exchange rate of N154/$. The final project cost would naturally be affected by exchange rate fluctuations and other variables.

“Total consultancy services cost so far is less than one percent of the estimated project cost. Whilst there is no standardized benchmark for transaction costs, the European Investment Bank’s Economic and Financial Report No. 3 of 2005, indicates that, on the average, the level of transaction cost for the procurement phase of PPP projects is over 10 percent of the capital value of the relevant project in Ireland, the Netherlands, Portugal, and the United Kingdom,” Orji said.

The MD said that NSIA’s technical consultants on the project were instrumental in value engineering of the project and reducing the initial cost to the current level.

He said that NSIA had put in place a multi-stage approval process for all disbursements, under which all payments involving construction are made only after approval by a third-party engineering firm, which matches work completed against amounts due.

Orji said that the Federal government made a commitment of N30 billion out of which it had released N18.3billion so far of which N10.4billion had been disbursed on early construction works.

According to him, “the NSIA assembled a team of Nigerian and international advisers with proven capabilities and global experience in PPP infrastructure projects to ensure the project got first-class advisory services. These consultants were engaged through a rigorous and competitive procurement process.”

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