IMF boss leaves to work with Nigerian hedge fund in sign confidence is returning

GLOBAL financial markets appear to have regained confidence in the Nigerian economy following President Muhammadu Buhari's naming of ministers after the head of investments for the International Monetary Fund (IMF) announced he was leaving to join a Nigerian hedge fund.

 

Over recent months, international money markets have expressed concern about the Nigerian economy due to the lack of government direction due to the absence of ministers. Last week, however, President Buhari swore in his 36 member cabinet, allaying such fears and it appears that confidence in now returning.

 

In the first such sign of this growing confidence, Gary Steinberg, who has spent nearly six years as the head of the IMF’s $20bn investment unit in Washington DC, will return to the UK to join the advisory team at CBO Investment Management. Based in London, CBO is a Nigerian asset manager that is planning to launch a fund to support small West African businesses.

 
Before his move to the US, Mr Steinberg ran investments for the Wellcome Trust and BP’s pension plan. At CBO, he will be joining a team led by Bex Nwawadu, formerly of BGC Partners, Chuka Mordi from Société Générale and Joanne Yoo, who previously helped to run New York State’s $175bn retirement fund.

CBO is a Lagos-headquartered firm, which already invests in project finance in Nigeria and now plans to spread its reach to small companies across West Africa. Its first $150m fund will be launched shortly, with $18.75m worth of support from the Overseas Private Investment Corporation, the US government’s development finance body.

Mr Steinberg said: "I am delighted to be joining CBO IM at this exciting stage of their development. I look forward to helping them and their clients achieve their investment objectives in one of the most dynamic areas of the global economy.”

Earlier this year, the IMF cut its growth forecasts for Nigeria but nevertheless it expects the economy to expand by 4% during the course of 2015. Vice president, Professor Yemi Osinbajo, has proposed a $25bn state fund to build infrastructure and counteract the effects of the tumbling oil prices, as crude oil currently accounts for more than 10% per cent of economic output.

 

Former Ogun State finance commissioner Kemi Adeosun has been named as finance minister and resumed work, although it is not clear which direction she will take the economy. Many commentators believe, however, that Professor Osinbajo will have overall responsibility for the economy.