ñi is one of the relationals. It denotes an object that has changed its state or location. ñi is often inflected for animate agent.
In the North Wind and the Sun, sentence four reads:
il aþ ñi marāona nīkamma jalūra jacālle rājanō;
We discussed marāona nīkamma jalūra jacālle yesterday. ñi plus rājanō (“along“) denotes the change in location of our wanderer with a warm cloak. Namely, that s/he is in motion along a path that leads to our protagonists.