NSIA records 10th positive earning in a row as total assets rises 10.5% to N1.02trn

By Onome Amuge

The Nigeria Sovereign Investment Authority (NSIA), manager of Nigeria’s sovereign wealth fund, recorded its 10th year of continuous positive earnings as total assets rose 10.5 per cent to N1.02trn in 2022 up from the N919.73bn recorded in 2021.

The NSIA, in its audited results for the 2022 financial year, said the firm’s financial performance underscores the resilience of its investment strategy, and the quality of its earnings.

Highlights of NSIA’s activities and performance during the period under review showed that in spite of the challenging macroeconomic environment across markets,its non-volatile revenue such as interest income, revenue from infrastructure business, and management fees earned from fiduciary activities, grew  34.5 per cent or N15.7 billion, year-over-year.

On the flipside, the agency’s total comprehensive income declined 34 per cent to N96 billion in 2022, compared to 147 billion recorded in 2021. The decline was largely attributed to strong macroeconomic headwinds marked by unprecedented shocks, such as the COVID-19 lockdown in China, the Russia-Ukraine conflict, food and energy crises, supply-chain disruptions, soaring inflation, and monetary policy tightening, which precipitously impacted the financial markets.

Although the Group’s earnings are lower than that of 2021, the NSIA Group said it remains confident in its investment strategy and will continue to explore opportunities to mitigate risks and achieve its investment objectives.

The agency also pointed out that its well-diversified portfolio continues to provide the resilience to withstand market challenges as evidenced by the results.

Aminu Umar-Sadiq, managing director and chief executive officer,NSIA, said the strong performance recorded despite the challenges in the operating environment, underscores the robustness of the agency’s diversified portfolio, and the excellent commitment of the team

Looking to the future, he said, the NSIA is resolute in its commitment to delivering increased investments in critical sectors of the economy, driving growth across its funds, and attracting third-party capital into Nigeria’s infrastructure sector.

“In 2023, we will be resourcing our various platforms targeted at emerging sectors – renewable energy, sustainability, innovation, and healthcare – which will ensure the Authority achieves its dual objectives of delivering financial returns and impactful social outcomes,” he said.