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Maps out infrastructure, subsidiary dev’t goals for 2024
Business a.m.
The Nigeria Sovereign Investment Authority (NSIA has disclosed a $500 million investment into domestic infrastructure projects, underscoring the organisation’s commitment to bolstering Nigeria’s infrastructure and economic capacity.
Fresh off a noteworthy year of financial performance in 2023, the Nigerian establishment which manages the Nigeria sovereign wealth fund, into which the surplus income produced from Nigeria’s excess oil reserves is deposited,also sharpened its strategic focus for the years ahead, centering on infrastructure development and expanding its portfolio of subsidiaries as it looks to further strengthen its role as a pivotal engine of Nigeria’s long-term economic growth.
Speaking at the NSIA 2023 earnings presentation in Abuja, Aminu Umar-Sadiq, managing director and CEO of the authority, shed light on the organisation’s strategic priorities for the years ahead.
In his words: “The NSIA’s impact on domestic investments has created real-time jobs and contributed to ease of doing business. Subsequently, by creating a more attractive investment environment, the NSIA is effectively leveraging its resources to attract significant additional capital for critical projects.
“Already, the NSIA has made investments in over 50 per cent of locally owned and operated private equity funds. This targeted support strengthens the local financial ecosystem and empowers homegrown businesses to contribute to national development.”
Umar-Sadiq noted that under the auspices of infrastructure and subsidiary development, the NSIA will prioritise a people-centered approach, enhancing its capital recycling and structure optimisation, and optimising operating cost efficiency to achieve its ambitious goals and cement its position as a key catalyst for sustainable development in Nigeria.
Amplifying his commitment to the success of the NSIA’s portfolio of businesses, Umar-Sadiq reaffirmed the authority’s dedication to operational excellence and efficiency across its subsidiaries, including project origination through the Nigerian Infrastructure Fund (NIF) and the operationalisation of its existing portfolio of subsidiaries.
Moving beyond traditional business operations, Umar-Sadiq underscored the NSIA’s unwavering focus on innovation and strategic growth, putting forward a range of far-reaching goals that would serve as catalysts for transformative economic progress in Nigeria.
In the pursuit of these aims, he emphasised the authority’s adherence to fiscal responsibility, coupled with an unwavering drive to attract foreign investment, cementing its reputation as an environmental, social and governance (ESG) partner of choice, with a steadfast commitment to establishing long-term savings mechanisms and executing projects with the highest degree of efficiency and effectiveness.
“The strategic priorities are designed to bolster NSIA’s foundational operations and workforce, thereby enhancing efficiency and overall effectiveness, while simultaneously emphasizing the cultivation of partnerships, attraction of investments, and initiation of outward-facing projects that align with NSIA’s strategic ambitions,” he explained.
Illuminating the authority’s trajectory of stability and growth in the last decade, Umar-Sadiq shed light on the NSIA’s impressive performance in asset preservation, diversification, and risk management, all of which have underpinned the organisation’s success in building a robust asset base of $2.47 billion by the end of 2023, reflecting a remarkable 8.5 per cent compound annual growth over the past years.
Marking a pivotal moment in NSIA’s history, Umar-Sadiq underscored the authority’s receipt of its first-ever royalty payment from the Nigeria Upstream Petroleum Regulatory Agency (NUPRC) in 2023, an historic milestone made possible by the transformational Petroleum Industry Act and totaling $45.59 million
He further noted that NSIA’s financial achievements in 2023 were characterised by a 119 per cent net asset growth, soaring to N2.22 trillion by December, marking a significant increase from the N1.02 trillion recorded at the end of 2022. This was further cemented by 11 consecutive years of continued positive earnings, growing at a robust cumulative annual rate of 117.3 percent.
Reflecting on its 2023 performance, NSIA disclosed a significant jump in its total operating income, from N101.1 billion in 2022 to N1.18 trillion in 2023, buoyed by strong gains from its diversified investment portfolio, including equities, fixed-income instruments, and its suite of strategic infrastructure investments.
In addition, the organisation’s total comprehensive income stood at N1.18 trillion for 2023, reflecting a growth of 1,122 per cent compared to N96.96 billion in 2022. NSIA’s core total comprehensive income, excluding foreign exchange gains, rose 670 per cent from N21.39 billion in 2022 to N164.69 billion in 2023, underlining the authority’s astute financial decision-making and proactive management practices.
Reinforcing NSIA’s dedication to its stakeholders, Umar-Sadiq highlighted the authority’s relentless pursuit of superior financial performance, diversified investment portfolio, and world-class infrastructure projects, all aimed at catalysing the social and economic development of Nigeria. He underscored NSIA’s commitment to attaining optimal risk-adjusted financial results, a robust and diverse asset portfolio, and a diversified range of long-term investments that can positively impact the social fabric of the nation, positioning the authority as a transformative engine for sustainable growth and development.
