Nigerian sovereign fund looks to unlock infrastructure funding with credit tie-up

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The chief executive of Nigeria’s sovereign wealth fund said on Thursday that it is setting up a company in partnership with London-based local currency guarantee firm GuarantCo to enable pension funds to invest in Nigerian infrastructure bonds, Reuters reports.

The new business will be launched in a few weeks’ time and aims to overcome some of the challenges facing the financing of infrastructure projects in Africa’s most populous nation. “The company will provide enhancements for infrastructure bonds, and we believe this will make an effective platform for Nigerian pension funds to invest in them,” said Uche Orji, chief executive of the Nigeria Sovereign Investment Authority (NSIA), which has some $1.25 billion under management.

The tie-up is the latest in a series of partnerships for the NSIA. In August it announced agreements with Old Mutual Investment Group and UFF Agri-Fund to establish two funds to invest in real estate and agriculture respectively. The NSIA also signed a strategic partnership agreement with its Moroccan peer, Ithmar Capital, to co-operate on bilateral investments.