Sovereign Wealth Fund: Nigeria Invests in $200 Million US Bonds

Nigeria through its Sovereign Wealth Fund (SWF) has invested $200 million in the bond market of the United States. This, according to SWF, “Is the 20% stabilization fund set aside from the $1 billion wealth fund, to be used for foreign financial market investment.” Nigeria’s SWF is $1 billion and was derived from oil income, and positioned to be invested to benefit the people and the economy. Financial giants in the US, UBS, Credit Suisse and Goldman Sachs are managers of the $200 million bond investment. Explaining the investment, the Chief Executive Officer of Nigeria’s Sovereign Investment Authority, Uche Orji, said, “$50 million of the fund was allocated to UBS last week for asset acquisitions in the US Treasuries, while the $150 million left will be handed over to Credit Suisse and Goldman Sachs this week for the development of a US bond portfolio.” “We find quite a few asset classes, such as US equities, to be a bit rich at the moment. We see more value in emerging markets.”