By Ndubuisi Francis in Abuja
The Nigeria Sovereign Investment Authority (NSIA) has announced the payment of US$417.46 million to the Nigeria Bulk Energy Trading Company Plc (NBET), being interest and earnings from US$350 million which it had managed on behalf of the bulk trader since 2014.
The money was managed by NSIA on behalf of NBET since 2014 and was returned following the expiration of the four years investment term.
A statement issued by the NSIA said it
transferred the funds to the NBET in three tranches as follows: US$8 million (May 2016), US$5.5 million (August 2016) and lastly US$403.96 million (July 2018).
The returned fund consists of the principal sum of US$350 million allocated to the NSIA from the proceeds of the US$1 billion Eurobond issued by the Federal Government of Nigeria in July 2013 under a fund management agreement and the sum of US$67.46 million (net of fees) as interest and earnings over the investment period.
Speaking on the development, the Managing Director and Chief Executive Officer, NSIA, Mr. Uche Orji stated, that the NSIA had accomplished its goals of “enhancing NBET’s liquidity position whilst enabling the company to focus on its principal function of developing the electricity market.
“NSIA’s role as fund manager helped to safeguard NBET’s capital against market volatility and also conferred the agreed financial benefits on the company,”
Commenting on the transfer, the NBET Managing Director / Chief Executive Officer, Dr. Marilyn Amobi, said NBET was pleased with the management of the fund over the last four years, adding that the NSIA as a competent fund manager preserved the capital, thereby helping to promote NBET’s credit worthiness as an off-taker for grid injected electric energy in the Nigerian Electricity Supply Industry (NESI).