The Nigerian Sovereign Wealth Fund has appointed Stanbic as its local custodian.
The appointment was made following a rigorous exercise by the Nigeria Sovereign Investment Authority (NSIA).
NSIA was set up in 2011 to serve as a catalyst for the diversification of Nigeria’s mono-economy. Its investment of the SWF is made through three funds: the Stabilisation Fund, the Future Generations Fund and the Infrastructure Fund. Each fund has an allocated quota of the overall $1 billion.
Stanbic IBTC’s role as local custodian of the Sovereign Wealth Fund, which is the third largest sovereign wealth fund in sub-Saharan Africa, will see it provide safekeeping, settlement and other related services for assets in the region of $1 billion. Stanbic IBTC’s appointment will complement NSIA’s appointment of other fund managers for the Sovereign Wealth Fund.
Commenting on the appointment, Mark Kerns, global head of Investor Services for Standard Bank, the parent company of Stanbic IBTC said: “As local custodians of the Sovereign Wealth Fund in Nigeria, we welcome the opportunity to work with NSIA and its other financial partners.”
Separately, BNP Paribas has appointed Stanbic IBTC as the custodian for BNP Paribas Securities Services in Nigeria.
Speaking on Stanbic IBTC’s appointment, BNP Paribas Securities Services’ regional head of Network Management for Europe, Middle East and Africa, Bogart Miheaye said: “Stanbic IBTC was viewed as the strongest of three candidates in Nigeria, with its longevity and a market footprint that has proven lobbying influence. Taking into consideration the current regulatory environment, Stanbic IBTC in Lagos was the first custodian to offer the segregation of treasury bills at the Central Bank.”
Commenting on Stanbic IBTC’s appointment, Kerns said: “We are delighted with the appointment from BNP Paribas Securities Services in Nigeria and look forward to deepening the existing relationship. This appointment is another strong validation of our custody services leadership in Nigeria as well as testament of our lobbying and market advocacy efforts.”
BNP Paribas and Nigerian SWF Appoint Standard Bank as Domestic Custodian in Nigeria
Stanbic, a member of the Standard Bank Group, has has been appointed local custodian in Nigeria for Nigerian Sovereign Wealth Fund and BNP Paribas Securities Services.