INFRASTRUCTURE
Nigeria pivots to domestic investments after naira rout wipes out gains
Abuja — The Nigeria Sovereign Investment Authority (NSIA) is restructuring its portfolio to focus more on domestic investments after a drop in the currency wiped out foreign-exchange gains in 2017. "The asset allocation strategy of NSIA has been restructured to reflect an increased focus on domestic infrastructure investments with 50% of future contributions to be dedicated to infrastructure," the fund said. The institution, which in 2017 had 80% of assets under management denominated in US dollars, saw valuations decline after the central bank introduced policies that weakened the local naira by at least 15% against the greenback. Measures such as a market price-determined trading window for investors and exporters were aimed at improving supply of dollars at a time revenue from oil, the nation’s biggest export, had fallen, causing the economy to contract by 1.6% in 2016. Profit at the fund slid 82% in 2017 to 22.6-billion naira (R824.9m) as foreign-exchange gains fell 98%. They ma...
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