James Emejo in Abuja
The Nigeria Sovereign Investment Authority (NSIA) said it grew its net assets by 119 per cent to N2.22 trillion in 2023 compared to N1.02 trillion the preceding year.
Total operating income also increased to N1.18 trillion from N101.1 billion in 2022, inclusive of foreign exchange (FX) gains during the period.
The results were contained in its audited results for the 2023 financial year.
“The financial performance underscores the resilience of the NSIA’s investment strategy and the quality of its earnings, despite the challenging global macro-economic, and geo-political landscape,” the Authority said in a statement.
Managing Director/Chief Executive, NSIA, Mr. Aminu Umar-Sadiq, said, “Our excellent results in 2023 and consistent positive performance over a decade offer further proof of our robust strategic asset allocation, proficient execution of our infrastructure initiatives as well as effective risk management processes.
“We remain firmly committed to catalysing positive socio-economic outcomes through critical infrastructure investments; strategic partnerships that expand our impact across pivotal sectors; and solutions that not only deliver our mandate but simultaneously uphold environmental stewardship.
“Looking ahead, we re-affirm our focus on creating shared prosperity for current and future generations of Nigerians.”
The significant rise in its operating income was attributed to the positive performance of the equities and fixed-income portfolios, as well as the positive performance of NSIA’s infrastructure investments.
In addition, the authority’s total comprehensive income increased by 1,122 per cent to ₦1.18 trillion in 2023, compared to N96.96 billion in 2022.
Also, core total comprehensive income (excluding foreign exchange gains) rose by 670 per cent to N164.69 billion from N21.39 billion in the previous year- a feat evidenced by robust strategic asset allocation and adherence to best-in-class enterprise risk management processes.
It stated that despite challenges in the operating environment including government’s policies, the NSIA Group’s net earnings amounted to N1.18 trillion, including FX gains of N1.02 trillion, marking a remarkable increase of 1,122 per cent compared to N96.96 billion in 2022.
It said, “In 2023, substantial shifts in the Nigerian business environment impacted the disposable income of individuals and communities across the nation.
The Nigerian government instituted new policy changes including the redesign of the Naira notes, the removal of fuel subsidies, and the floating of the currency.
“The country during the period struggled with high double-digit inflation rates soaring up to 30 per cent and over a 100 per cent devaluation of the currency to the USD. These factors shaped the economic landscape throughout the year.
“Additionally, the global economy grappled with hurdles on its path to recovery, including escalating geopolitical tension, surging natural disasters, and the growing trend of deglobalisation and trade protectionism. The US Federal Reserve announced aggressive interest rate hikes to tame inflation, sending shockwaves through the global banking industry.”
