Nigeria’s capital market community on Tuesday unveiled an investment fund called “The Nigerian Football Fund” to bolster the country’s sports industry.
TNFF is a mutual fund that combines the traditional benefits of a mutual fund with the unique offerings of a structured fund.
TNFF is raising 5 billion naira through an initial public offering of 5.0 billion units at 1 naira per unit.
The minimum fund subscription is N100,000 or N100,000 in multiples of N100,000 thereafter.
TNFF is registered as an open-end fund with the Securities and Exchange Commission and is managed by GTI Asset Management & Trust Ltd., a member of the GTI Group.
Speaking on TNFF, a former Deputy Governor of Lagos State, Femi Pedro, said it would fill the missing link in the development of Nigerian sport.
“The TNFF provides a unique vehicle for mobilizing private sector funding for sport development, enabling the sector to contribute significantly to national economic development,” Pedro said.
He noted that effective and consistent funding had been the major shortcoming undermining the potential of the Nigerian sports ecosystem.
“This is a historic occasion, a milestone in the development of Nigerian sport, I have no doubt it will unlock the potential of the sporting ecosystem.
“I personally approve of this project, there is no shortage of investment assets in the sports industry and I am sure investors will get good returns,” Pedro added.
He added that the TNFF aligns with the national agenda to transform the sport into a financially rewarding industry that would be attractive to investors.
“I see it as very creative because the missing link has always been money, we have the people, the talent, the passion, the resources and everything you can think of, but we don’t have management funding. to make our dream come true,” he said. .
Chairman of the House Sports Committee, Hon. Olumide Osoba, praised GTI for its innovation, noting that the TNFF investment proposal supports the government’s efforts to diversify the economy.
Osoba said the National Assembly will continue to support private sector initiatives aimed at fostering national growth and development.
The Vice President of the Football Federation of Nigeria, Seyi Akinwunmi, said the TNFF will herald a lot of greatness in the Nigerian sports industry with several multiplier effects on the economy, security and youth employment.
According to him, TNFF will change the narrative in Nigerian sport through major investments, creative initiatives and creating and maintaining higher standards.
“We at NFF are proud of GTI, we conducted our independent investigation and were happy with the group’s pedigree before agreeing to partner with them,” Akinwunmi said.
Also speaking, GTI Group Chief Executive Abubakar Lawal said the TNFF would serve as a catalyst for sustainable funding of football and other sports, with the aim of increasing the sport’s contribution to the national gross domestic product. to 0.5% within the next five years.
“The way it will affect the economy is monumental. First of all, you have a vehicle that people will invest money in across the world and what it does is that a natural structure will emerge following that.
“TNFF is a catalyst, the project is massive so jobs will be created, cash will be provided, infrastructure will be delivered, insecurity will be managed, the economy will grow from this experience.
“If you look at the prospectus, we have a target; in five years, this project should represent 0.5 percent of the GDP, it is enormous.
“GDP to date is between $450 billion and $500 billion with no baseline change. Nigerians will soon begin to see, this is a way to begin the rebranding and restructuring of Nigeria, creating a flat ground, from new opportunities for Nigerians. A new asset class has been born,” Lawal said.
He said TNFF offers immense opportunities to all stakeholders, noting that the birth of TNFF means that Nigeria now has a new asset class in which average investors and fund managers can invest their money. and be assured of good returns.
“The story of this project is like an elephant, what you see depends on which side you are on, for example, if you are an average investor, of course, you will be there to earn the dividend reward.
“If you are a sports enthusiast you will see progress in the sports ecosystem and by extension the Nigerian economy, if you are the government you will see taxes and revenues increase so it all depends on which side of the divide you are and that’s why the whole structure is designed to take everyone.
“With all the benefits, it’s super appealing, first of all, it’s unique, we’ve never had anything like it in the past for novelty, for ingenuity, for originality, it’s is fantastic and the beauty of it is that the regulators have been able to deliver it in a way that it’s managed on a risk basis and everyone is excited so it’s very beneficial for everyone world,” Lawal said.
He added that the TNFF would also free up government revenue by reducing government involvement in sports funding.