Presentation to Securities & Exchange Commission (SEC)

September 2013

Confidential

Agenda

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1. Introduction: NSIA Vision & Mission

2. Global Context of Benefits of SWFs

3. Management Update on Operations to Date

4. Funds Update

5.

Q & A

The NSIA Vision Statement & Mission

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�  The vision of the NSIA comes in two parts: –  (1) To establish NSIA as world-class sovereign wealth fund manager –  (2) To become the premier infrastructure investor/ co-investor partner of choice for all commercially

viable projects of size in Nigeria

�  Mission of the NSIA –  Build a savings base for future generations of Nigerians –  Enhance the development of Nigerian infrastructure –  Promote fiscal stability for the country in times of economic stress

�  The NSIA’s operating model will be a hybrid of outsourced external- fund managers and in-house managers

Attributes of World Class SWF

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�  Compliance with Santiago Principles –  24 key principles including transparency of investment processes and independence of decision

making

�  Financially self sustaining enterprises –  The NSIA will be a public sector enterprise with a private sector philosophy –  Our expenses will be paid from returns we generate

�  Vehicle for attracting foreign investment –  Presence of co-investment partners is a key component of our infrastructure investment process – so

far we have received positive feedback from potential partners, including other SWFs and private equity firms

�  Stabilization effect in times of economic stress –  SWF’s are tools of fiscal responsibility and major countries with sizeable SWFs have shown these

benefits

�  Disciplined contribution to the fund is a tool that lowers cost of capital –  Rating agencies such as S&P have mentioned that the NSIA important for our country rating, which

affects our cost of capital

SWFs are growing the world over

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More new funds created in the last 10 years than in the previous 40 years

*For the US and Canada, this includes State & Province pension funds. ** Only Iraq and Ecuador are only OPEC member nations without an SWF

SWFs, ranked by total assets

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Rank Name

AUM (US$

billions)   Rank Name AUM

(US$ billions)

1 Government Pension Fund Global (Norges Bank), Norway $665.30   24 Samruk-Kazyna, Kazakhstan $32.10

2 Abu Dhabi Investment Authority, United Arab Emirates $627.00   25 National Development Fund, Iran $30.00

3 State Administration of Foreign Exchange, China $589.50   26 State Oil Fund of the Republic of Azerbaijan, Azerbaijan $29.80

4 China Investment Corp., China $482.20   27 Strategic Investment Fund, France $25.50

5 Hong Kong Monetary Authority, Hong Kong $328.80   28 National Pensions Reserve Fund, Ireland $18.20

6 Kuwait Investment Authority, Kuwait $296.00   29 Taiwan National Stabilisation Fund, Taiwan $17.20

7 Temasek Holdings, Singapore $247.70   30 New Zealand Superannuation Fund, New Zealand $16.80

8 Government of Singapore Investment Corp., Singapore $247.50   31 National Development Fund, Venezuela $15.00

9 National Social Security Fund - China, China $150.50   32 Bahrain Mumtalakat Holding Co., Bahrain $13.40

10 Dubai World, United Arab Emirates $100.00   33 Economic and Social Stabilization Fund, Chile $13.20

11 Qatar Investment Authority, Qatar $100.00   34 Dubai International Capital, United Arab Emirates $10.00

12 National Wealth Fund, Russia $88.30   35 Abu Dhabi Investment Council, United Arab Emirates $10.00

13 Future Fund, Australia $83.90   36 Timor-Leste Petroleum Fund, Timor-Leste $9.70

14 Revenue Regulation Fund, Algeria $70.00   37 Fundo Soberano do Brasil, Brazil $8.50

15 Libyan Investment Authority, Libya $65.00   38 Pula Fund, Botswana $6.90

16 Mubadala Development Co., United Arab Emirates $64.00   39 Oil Income Stabilization Fund, Mexico $6.20

17 International Petroleum Investment Co., United Arab Emirates $61.80   40 Sanabil al-Saudia, Saudi Arabia $5.30

18 Reserve Fund, Russia $61.40   41 Fundo Soberano Angolano, Angola $5.00

19 Korea Investment Corp., South Korea $50.00   42 Heritage and Stabilisation Fund, Trinidad and Tobago $4.50

20 Kazakhstan National Fund, Kazakhstan $47.40   43 Pension Reserve Fund, Chile $4.40

21 Papua New Guinea Sovereign Wealth Fund, Papua New Guinea $47.30   44 Arab Petroleum Investments Corp., Saudi Arabia $4.30

22 Brunei Investment Agency, Brunei $39.30   45 Government Petroleum Insurance Fund, Norway $3.60

23 Khazanah Nasional, Malaysia $35.30  

*Source: 2012 Databook – Pension and Investments, Dec 24, 2012.

Case Studies: Norges Bank & Abu Dhabi Investment Authority

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Fund: Government Pension Fund Global Country: Norway Inception Date: 1996 Seed Funding: $300 million Size Today: $665.30 Billion Source of Funds: Oil revenue, investment proceeds Historical Returns: Long term average return on assets–5% Portfolio Construction: Equities: 60%; fixed income: 35-40%; Real Estate: 5% Impact on Country: �  Stabilization Fund indirectly instrumental to Norway

weathering the Euro Crises �  Norwegian government currently transfers $1bn a week

into the Fund.

Fund: Abu Dhabi Investment Authority Country: United Arab Emirates (UAE) Inception Date: 1976 Seed Funding: $0.00 Size Today: $627.00 billion Source of Funds: Oil revenue, investment proceeds Historical Returns: 30 year annualized returns–8.1%; 20 year annualized returns–7.4% Portfolio Construction: Developed Equities: 35-45%; Middle East Equities: 10-20%; Small cap Equities: 1-5%; Government Bonds: 10-20%; Alternatives: 5-10%; private Equity:2-8%; Infrastructure: 1-5%: cash 0-10% Impact on Country: �  Key to stabilizing Dubai during Financial Crisis �  Infrastructure Improvement in UAE coinciding with SWF

emergence as a global players �  Future generations Savings Fund investing in High Tec

*Source: 2012 Databook, Pension and Investments, Dec 24, 2012. Sovereign Wealth Fund Initiative, The Fletcher School—Tufts University

Case Studies: Temasek Holdings & Kuwait Investment Authority

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Fund: Temasek Holdings

Country: Singapore

Inception Date: 1974

Seed Funding: $286 million ( grant of govt. owned assets)

Size Today: $247.70 billion

Source of Funds: State-owned assets, dividends, divestments, borrowings, bond issues, periodic cash injection

Historical Returns: Annualized returns since inception–17.0%; 20 year annualized returns–15%

Portfolio Construction: 60% fixed income; 35% equities; 5% alternative investments

Impact on Country:

�  Commercialization, management, and eventual sale/listings of state owned enterprises

�  Instrumental to creation of industrial base in Singapore – owning key strategic industries.

Fund: Kuwait Investment Authority

Country: Kuwait

Inception Date: 1953

Seed Funding: $ N/A

Size Today: $296.00 billion

Source of Funds: Oil revenue, investment proceeds

Historical Returns: 20 year annualized returns–8.5%

Portfolio Construction: N/A

Impact on Country:

�  Economic stabilization and rebuilding of Kuwait after first Gulf War

�  Continued stabilization of the economy through the Infrastructure Investment in Kuwait.

*Source: 2012 Databook, Pension and Investments, Dec 24, 2012. Sovereign Wealth Fund Initiative, The Fletcher School—Tufts University

Case Studies: Recent Examples

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Country Fund Inception Facts

Libya

Libyan Investment Authority

August 2006 •  AUM: $65.0 billion •  Income source: Oil revenues

East Timor

Timor-Leste Petroleum Fund

August 2005 •  AUM: $9.7 billion •  Income source: Oil and gas

Botswana

Pula Fund 1994 •  AUM: $6.9 billion •  Income source: diamonds and

minerals

Angola

Fundo Soberano Angolano October 2012 •  AUM: $5.0 billion •  Income source: oil revenues

*Source: 2012 Databook, Pension and Investments, Dec 24, 2012.

Evolution of the NSIA

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�  The concept of the SWF is not new and is steeped in the historical policy of the Federal Government to establish a savings base for the future: –  Since 2003, four Ministers of Finance have worked to realize the SWF –  Excess Crude Account upon which the SWF concept is anchored

�  The NSIA was created by an Act of the National Assembly: –  Nigeria Sovereign Investment Authority (Establishment, etc.) Act, 2011 –  Signed into law by the President on 26th May 2011 –  NSIA Act written with best practices of the Santiago Principles in mind

�  Recent Updates: –  The Board of the NSIA was inaugurated on 9th October, 2012

–  The NSIA plans to commence securities invest from June 2013, which is a record time according to our peer group of sovereign wealth funds

–  The International Forum of Sovereign Wealth Funds (IFSWF) has invited the NSIA to apply for observer status, an interim step before full membership. NSIA will present credentials in Oslo, Norway in October 2013

Governance & Management Structure

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.

Governing Council

Board of Directors (9 members)

Managing Director/CEO

Chief Investment

Officer

Chief Financial Officer

Chief Risk Officer

Chief Legal Officer

Head of Human

Resources

Authority Secretary

Internal Audit

Senior Executive Management

Mr. Uche Orji, Managing Director & Chief Executive Officer Prior to his appointment, Mr. Orji was Managing Director, Global Coordinator & Head of US Semiconductor Research and Co-Head of US Tech Sector Research at the prominent global investment bank, UBS AG. Mr. Orji has also previously worked as a senior executive at JP Morgan & Co. and Goldman Sachs Asset Management as an equity portfolio manager. Mr. Orji earned a BSc, Chemical Engineering from University of Port Harcourt and an MBA from Harvard Business School.

Mr. Hanspeter Ackermann, CFA, Chief Investment Officer Until recently, Mr. Ackermann was an Assistant General Manager with Samba Capital in Saudi Arabia. In this regard, he was responsible for managing an asset pool of approximately US$10 billion. Mr. Ackermann was previously President and Managing Director of Deutsche Bank Investment Management Inc., and also served as CIO & Senior Portfolio Manager of Swiss Bank Corporation (UBS). Mr. Ackermann holds a B.S. in Business Administration from the Handelsschule Kaufmaennischer Verein in Basel, Switzerland and is also a Chartered Financial Analyst (CFA). Mrs. Stella Ojekwe-Onyejeli, Executive Director & Chief Risk Officer Mrs. Ojekwe-Onyejeli joins the NSIA following a distinguished tenure as Director and Head of Operational Risk & Control at Barclays Africa. Mrs. Ojekwe-Onyejeli has also served as Vice President & Head of Quality Assurance Africa at Citibank, and Senior Manager at Arthur Andersen Nigeria. Mrs. Ojekwe-Onyejeli earned a BSc in Chemistry from the University of Lagos and an MBA Cranfield School of Management in the UK.

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NSIA Board of Directors

Chairman:

�  Alhaji Mahey Rasheed (OFR), Chairman of the Board, Chairman of Legacy Pension, former Central Bank of

Nigeria Deputy Governor, and a member of the Board of First Bank

Executive Directors:

�  Mr. Uche Orji, Managing Director & Chief Executive Officer

�  Mr. Hanspeter Ackermann, CFA, Chief Investment Officer

�  Mrs. Stella Ojekwe-Onyejeli, Executive Director & Chief Risk Officer

Non-Executive Directors:

�  Mr. Jide Zeitlin, (Chair of Investment Committee), Retired Partner, Goldman Sachs & Co.; Chairman/CEO of Keffi Group

�  Mr. Arnold Ekpe (Chair of Risk Committee), Retired Group CEO of Ecobank Transnational Incorporated

�  Mrs. Ibukun Awosika, Managing Director & Chief Executive Officer of Sokoa Chair Centre Ltd.

�  Barrister Olabisi Soyebo (SAN), Partner of Abdullahi Ibrahim & Co.

�  Mr. Hassan Usman, Managing Director & Chief Executive Officer, ASO Savings & Loans Plc.

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The NSIA: Three Investment Funds

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Stabilisation Fund

Future Generations Fund

Nigeria Infrastructure Fund

The NSIA: Three Investment Funds, cont’d

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ü  Starts out as outsourced and transitioned to in-house managers over time ü  Liquidity and safety are key, targeting short duration assets, relatively low risk,

investment grade assets Stabilization Fund

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ü  Public securities investing starts off fully outsourced to external fund managers ü  Parts of fund will subsequently be brought in-house to comply with the enabling

Act’s mandate ü  Alternatives, including private equity, will be a hybrid of outsourced managers

and direct co-investments with partners

Future Generations Fund

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ü  Managed in-house – there aren’t many dedicated Infrastructure Funds ü  Focused mostly on equity investments with credible co-investment partners ü  Targeting key areas that give a balance between financial and strategic benefits

Nigeria Infrastructure Fund

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Asset Allocation Update Summary

–  Board approved the investment allocation formula to the three Funds that make up the SWF: –  The remaining 15% will be kept as unallocated for now, and used to top up each of the ring-

fenced funds, as opportunities arise.

–  This formula aims to balance the infrastructure need of the current generation and the need for savings for the future generation of Nigerians

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Overview: Stabilisation Fund

This Fund is intended to help increase the macro-economic credibility of Nigeria and to act as a buffer against short term macro-economic instability.

–  Assets will be invested conservatively, striking a balance between generating a modest positive return and preserving capital in nominal terms. Given the unpredictable and short-term nature of the Fund’s potential liabilities, immediate liquidity is required.

–  Target returns: Stabilization fund - US CPI –  The base currency in which the Fund shall be denominated is the US dollar.

The Fund is restricted to investing in investment grade sovereign and corporate fixed income assets.

–  The initial Benchmark is a blend of 25% Barclays 1-3 year US Treasury Bonds and 75% Barclays 1-3 year US Corporate Bond Index.

–  UBS was selected to manage the US Treasury Bond portfolio –  Goldman Sachs and Credit Suisse were selected to manage the investment grade US

corporate bond portfolio.

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SF: Allocation Guidelines

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Overview: Future Generations Fund

The purpose of the Future Generations Fund is to preserve and grow the value of assets transferred into it, thereby enabling future generations of Nigeria to benefit from the country’s finite oil reserves.

–  Given its objective of preserving and growing purchasing power in US dollar terms over the longer term the Fund shall aim to deliver a return in excess of US inflation. The target return is presently set at US CPI + 400 basis points (US inflation +4%).

–  The Fund shall be invested for the long term, it being understood that this should mean an investment horizon of more than 20 years and multiple economic and market cycles.

–  To facilitate shorter term monitoring, the Fund’s performance shall be judged against a Policy Benchmark and a Strategic Benchmark (detailed in a subsequent slide)

–  The base currency against which the Fund shall be judged is the US dollar

The Fund’s investments shall be diversified by manager, by geography and by economic sector.

–  To achieve its long-term investment objectives, the Fund shall be invested primarily in asset groupings according to specific roles in the portfolio, ‘Growth Assets’, ‘Deflation Hedges’, ‘Inflation Hedges’, detailed on the next slide.

–  The Investment Committee shall review the Policy Allocation at most annually and may make changes from time to time. The bias would be not to change, and it is anticipated that changes will be infrequent. Long term strategic changes may result in modifications to this IPS.

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FGF: Allocation Guidelines

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Asset Class Views

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Asset Class Views, cont’d

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Asset Class Views, cont’d

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Asset Class Views, cont’d

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Overview: Nigeria Infrastructure Fund (NIF)

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Examples of sectors for the NIF:

The NSIA Act identified several areas including:

�  Transport Infrastructure

�  Energy Infrastructure

�  Agriculture, Water resources

�  Healthcare, Power, port, dams, airport facility

�  Other sectors to stimulate growth and diversification of Nigerian economy, attract foreign investment

Also Social Infrastructure Sectors (up to 10% of NIF fund) will bring benefits to all Nigerians

� This is NOT a grant scheme: Target returns could be less than minimum hurdle rates. Key Areas include: Education, Environment, Women’s Empowerment, Healthcare, Housing, inland water resource. We expect to leverage donor agencies – not looking for “not for profit”

� Criteria for Social Infrastructure Investments will be published early in 2H

According to the NSIA Act, “…The Authority shall review and analyze against criteria of financial returns all written proposals of the FGN, State Governments, and LGA submitted to the Authority. The Authority shall issue appropriately detailed parameters and procedures for the submission of such proposals”

National impact

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In order to successfully contribute to the growth and development of the economy, the NIF will invest in infrastructure which:

Aligns with national priorities

Sustainable Investment

Portfolio

Balanced Portfolio ü Diversified portfolio ü Sectors with high multiplier effects e.g. Roads, Rail ü Potential to facilitate the development of critical industries e.g. Agriculture, Healthcare ü Open up ‘closed’ sectors to local and foreign investors e.g. Rail, Aviation, Mining ü Preferred co-investor for Infrastructure projects

Catalyze local and foreign

private sector participation in infrastructure investments

Generates attractive returns

NIF’s Investment Strategy

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Overview

Transformation

§  Fundamentally change the state of the industry’s infrastructure and unlock private sector opportunities

§  Investors: Mostly Government

§  May require some interface with government for the development of investor-friendly policies

Development

§  Accelerate the evolution of infrastructure and standardize methods of engagement with MDAs

§  Investors: Government /Private

§  Existing policies may need refinement

Support

§  Create liquidity pools and assert the quality of infrastructure assets

§  Investors: Mostly Private

§  Opportunities to pioneer the development of new infrastructure securities to attract conservative capital

Sectors

§  Water Resources §  Rail §  Aviation §  Power Transmission §  Mining §  Gas Pipeline, Storage & Processing §  Oil Refining §  Real Estate

§  Agriculture §  Healthcare §  Ports §  Roads §  Free Trade Zones & Industrial Parks

§  Communications §  Power Generation & Distribution

Categorization of NIFs Investment Universe

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Roads

Agriculture

Healthcare

Rail Aviation

Water Resources

Communication

Free Trade Zones & Industrial Parks

Mining & Basic Materials

Real Estate

Ports

Gas Storage & Processing

Gas Pipelines

Oil Refining

Power Generation

Power Transmission

Power Distribution

Other Sectors of Interest

Focus Sectors

Overview of Potential NIF Portfolio Build-Out

Focus Sector Allocation

NSIA: Investment Partner of Choice

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�  Global investors are increasingly looking to Nigeria as one of the next major growth markets

�  Many are in search of a local partner of choice that understands the language of the private sector and can effectively interface with government

�  The global support for the NSIA by potential investment partners and banks has been overwhelmingly positive

�  The clear message has been: “…(the NSIA) are the ones we have been waiting for”

�  These investments will be made on the ground within States and Local Governments

“Public Sector Company with Private Sector Philosophy”

Discipline is the key to success - “FIT Model”

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�  We summarize our guiding principles as “FIT”

–  Financially Sustainable Returns

§  Lean business model to promote sustainable financial returns

§  Every investment must have a business model that meets our strategic and financial return targets

§  Decisions are made in compliance with financial and strategic return objectives

–  Independence of Decision Making

–  Transparency of Process – periodical investor reports statements to provide visibility on Fund performance

Financial Sustainability

Independence of Decisions

Transparency in Process

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Please visit us at:

www.nsia.com.ng