...As Comprehensive Income Surges By 1,122% In FY 2023
The Nigeria Sovereign Investment Authority (NSIA) on Thursday restated its continued commitment to strong corporate governance, accountability, transparency and inclusion of critical stakeholders in its continued strive to improve the nation’s infrastructure for improved performance of the economy and value-addition to socioeconomic well-being of the citizenry in the years ahead.
The Authority’s Managing Director/CEO, Mr. Aminu Umar-Sadiq, who made the pledge during the presentation of the NSIA 2023 Operational Performance in Abuja, outlined infrastructure and subsidiary development as among the agency’s strategic priorities for 2024 and beyond given the impressive performance recorded by it in the 2023 financial year.
He explained that under infrastructure and subsidiary development, the NSIA would adopt a people-oriented strategy, enhance its capital recycling and structure optimization, and leverage the operating cost efficiency to achieve its set goals.
The investment expert reiterated that the NSIA would continue to ensure operational excellence and efficiency in all its businesses, including project origination in the Nigerian Infrastructure Fund (NIF) and successful operationalization of subsidiaries, as well as strengthen stakeholder relationships through effective stakeholder and investor engagement.
According to him, under the NSIA’s innovation and strategic growth initiative, the agency would move beyond business-as-usual approach to actualize its goals by promoting fiscal responsibility, attracting foreign investment, becoming an ESG partner of choice, establishing long-term saving mechanisms, and executing projects effectively.
Umar-Sadiq clarified: “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.
“NSIA has demonstrated resilience and growth in its asset performance over the last 10 years, as evidenced by its commitment to building its asset base while creating value within the economy.
“The Authority, through capital preservation, a diversified portfolio of assets, and an enterprise approach to risk management, has grown the Net asset of the Authority to $2.47 billion as of the end of December 2023, representing an 8.5% compound annual growth over the years.
“NSIA received its first royalty payment from the Nigeria Upstream Petroleum Regulatory Agency (NUPRC) in 2023 (by virtue of the Petroleum Industry Act), in the sum of $45.59 million” he added.
A breakdown of the financial performance indices reflected that NSIA’s net assets grew by 119% to N2.22 trillion in December 2023 from N1.02 trillion recorded at the end of fiscal year 2022, recording 11 consecutive years of continuous positive earnings, with a cumulative annual growth rate of 117.3 percent.
Similarly, its total operating income increased from N101.1 billion in the previous year to N1.18 trillion, inclusive of foreign exchange gains during the period under review as the management attributed the significant rise to the positive performance of the equities and fixed-income portfolios, as well as the positive performance of NSIA’s infrastructure investments.
A further analysis of the report indicated that the Authority’s total comprehensive income closed at N1.18 trillion for 2023, indicating a growth of 1,122% growth relative to N96.96 billion in 2022.
NSIA’s core total comprehensive income, excluding foreign exchange gains, rose from N21.39 billion in the previous year to N164.69 billion, reflecting 670% increase attributable to the management’s robust strategic asset allocation and adherence to best-in-class enterprise risk management processes.
In his concluding remarks, Umar-Sadiq assured stakeholders of the NSIA management’s to continually create long-term value for its stakeholders by delivering excellent risk-adjusted financial results, developing a healthy and well-diversified portfolio of assets and infrastructure projects, and enhancing desired social outcomes in the country.
