The Nigeria Sovereign Investment Authority (NSIA) on Thursday reported a 10.5% growth in its net assets to N1.02 trillion in financial year (FY) 2022, when compared to the N919.73 billion the assets’ value stood in FY 2021
The authority’s Managing Director/Chief Executive Officer, Mr. Aminu Umar-Sadiq, who disclosed this during a chat with journalists at the 2022 Performance and Earnings briefing in Abuja, explained that despite the macroeconomic headwinds which negatively impacted on its transactions, the NSIA had consistently recorded profits over the last 10 years of its existence.
The investment expert said that despite the numerous challenges posed by the global economic environment, the NSIA delivered a strong financial performance, underscoring the management’s asset allocation and investment strategy.
According to him, in the FY 2022, the total revenue earned from the Authority’s core assets within the three funds and its fiduciary activities in relation to its third-party managed assets, however, totaled N11.4 billion, representing a decline of 27.2 per cent from the preceding year.
Umar-Sadiq reported that earnings by the investment management institution from interest income, infrastructure business revenue, and fiduciary activities’ management fees increased by 34.5 per cent amounting to N15.7 billion year-on-year growth.
However, he disclosed that the total comprehensive income closed at N96.96 billion for 2022, a decline of 34 per cent relative to N147.98 billion in 2021.
Umar-Sadiq attributed the decline in total income year-on- solely to fair-value losses on financial assets from externally-managed investments.
He explanied that notwithstanding the Volatile, Uncertain, Complex, and Ambiguous (VUCA) nature of the markets in 2022, the NSIA posted positive earnings through effective management of the resources and the deft and harmonious working relationship of the board, executive management, and partner institutions.
He said: “The results that we are presenting today are a continuation of the sterling foundation laid at the NSIA since inception. It is a legacy of achievement that we are sustaining and improving upon.
“We are committed to ensuring that Nigeria’s Sovereign Wealth Fund consistently ranks highly in the league of state-owned funds in terms of transparency, governance, and performance.
“Our foray into some new terrains underscores our resolve to ensure that optimal returns are generated through responsible investing. For emphasis, we have on behalf of the present and future generations expanded our focus sectors to include climate finance, renewable energy, innovation, and technology.
“This is in addition to the priority sectors we had maintained over the years namely agriculture, motorways, power, healthcare, and gas industrialization”, Umar-Sadiq added.
Commenting on the management’s strategy for 2023, he said that the authority would focus on driving growth through platforms, assessing exit opportunities from existing investments, attracting local currency capital, increasing third-party asset management portfolio as well as leveraging ESG as an asset class.
He assured that NSIA ‘s board and management remained confident in the institution’s investment strategy and would continue to explore opportunities to mitigate risks and drive financial performance.
