NEC Commends Nigeria Sovereign Investment Authority’s Performance At Annual Governing Council Meeting

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*Receives briefing on crude oil production & security

*Council sub-committee to consider Governors’ concerns over ownership of new NNPC Ltd

The National Economic Council (NEC) has endorsed a report on the 2021 financial performance of the Nigeria Sovereign Investment Authority (NSIA), commending the board and management for a credible performance despite the challenging economic atmosphere.

The commendation was part of resolutions reached by NEC at its meeting presided over by Vice President Yemi Osinbajo, SAN, virtually on Thursday. This month’s meeting was also the Governing Council of the NSIA.

The Council adopted the report and commended the NSIA.

According to the presentation by the MD/CEO of NSIA, Mr Uche Orji, “the NSIA delivered impressive financial results, underscoring the resilience of its strategy.

“For the 9th year in a row, the NSIA has consistently remained profitable, closing the 2021 financial year with a profit after tax of N153.8 billion, slightly down 1.9% from 2020. (2020: N156.5 billion). Total comprehensive income declined marginally in 2021 by 8.2% to close the year at N147.0 billion (2020: N160.1 billion)

“The NSIA has reached major milestones across the domestic infrastructure in the year under review in terms of projects such as motorways, agriculture, healthcare, technology, gas industrialization and others.”

In consideration of other matters, the Group CEO of NNPC Limited, Mallam Mele Kyari, made a presentation to the Council on “Crude Oil Production, PMS Supply Situation and Security Intervention against Oil Theft”.

In it, he raised several issues including oil production and market updates. He also gave updates on the PMS supply and distribution, assuring sufficiency.

After his presentation, State governors raised a number of issues regarding the ownership of the new NNPC Limited, and its assets and liabilities.

NEC therefore resolved, and the Vice President directed that a sub-committee of the Council be set up to liaise with the Federal Government on all the issues.

Below are some of the highlights of Thursday’s NEC meeting:

NEC (5TH IN 2022) 126TH MEETING

THURSDAY 18TH AUGUST, 2022

BRIEF ON THE NIGERIA SOVEREIGN INVESTMENT AUTHORITY (NSIA) TO THE GOVERNING COUNCIL BY UCHE ORJI, MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

The Managing Director of NSIA briefed the NEC today on the activities of the Authority. The NSIA team briefed the council on the complete financial performance of the Agency for the year 2021 as follows:

PERFORMANCE OVERVIEW; FINANCIAL PERFORMANCE

NSIA delivered impressive financial results, underscoring the resilience of its strategy. For the 9th year in a row, the NSIA has consistently remained profitable, closing the 2021 financial year with a profit after tax of N153.8 billion, slightly down 1.9% from 2020. (2020: N156.5 billion). Total comprehensive income declined marginally in 2021 by 8.2% to close the year at N147.0 billion (2020: N160.1 billion)

The NSIA has reached major milestones across domestic infrastructure in the year under review in terms of projects such as motorways, agriculture, healthcare, technology, gas industrialization and others.

Council Resolution:

Council endorsed the report and commended the NSIA board and management for a credible performance despite the challenging economic atmosphere.

PRESENTATION ON STATE ACTION ON BUSINESS ENABLING REFORMS (SABER) PROGRAM BY THE HONOURABLE MINISTER OF INDUSTRY, TRADE AND INVESTMENT AND THE SPECIAL ADVISER TO THE PRESIDENT ON EASE OF DOING BUSINESS

The presentation was to inform the National Executive Council that the PEBEC-NEC EoDB intervention would deepen sub-national business-enabling reforms through SABER program incentives, using results-based financing targeted at improving the business environment.

The Ease of Doing Business (EoDB) mandate was articulated in the Economic Recovery and Growth Plan (ERGP) 2017-2020, and subsequently retained in the National Development Plan (NDP) 2021-2025 which is aimed at generating 21 million full-time jobs and lifting 35 million people out of poverty by 2025.

In November 2019, the PEBEC Secretariat and World Bank began discussions on incentives to sub-nationals for the deepening of EoDB reforms implementation through the SABER program – potentially the first Program-for-Results (PforR) on EoDB at a national scale in the World.

On October 29, 2021, the Honorable Minister of Finance, Budget and National Planning (HMFBNP) made a request to the World Bank to commence preparation with government partners for the SABER Program.

This was sequel to an earlier request in March 2020 from the PEBEC through its Vice Chair, the Honorable Minister of Industry, Trade and Investment to the HMFBNP requesting for World Bank support to deepen EoDB reforms at the sub-national level.

Several advanced preparatory actions have since been delivered to accelerate the design of the Program.

The SABER Program is a 3-year performance-based intervention jointly designed by the World Bank

Technical team and the PEBEC Secretariat with support from the FMFBNP Home Finance Department, HFD and the Nigeria Governors’ Forum (NGF) Secretariat, to incentivise and strengthen the implementation of business enabling reforms across Nigeria.

Council approved:

The SABER program
The setup of proposed SABER National Steering Committee, comprising PEBEC and the NG SABER Adhoc Committee to be chaired by the Vice President

Council also received briefings from both the Nigerian Centre for Disease Control (NCDC) and the National Primary Health Care Development Agency (NPHCDA).