NSIA’s Net Assets Grow 119% To N2.22trn In 2023

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The Nigeria Sovereign Investment Authority (NSIA) has declared N2.22 trillion net assets in 2023 financial year, a growth of 119 per cent from N1.02 trillion declared in 2022 financial year.

The new milestone is contained in in its 2023 audited result and accounts made public during the week.

NSIA’s total operating income increased from N101.1 billion in the previous year to N1.18 trillion, inclusive of foreign exchange gains during the period.

This significant rise 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 the period under review, the total comprehensive income closed at N1.18 trillion for 2023, a growth of 1,122 percent 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, marking a 670 percent increase attributable to the Authority’s robust strategic asset allocation and adherence to best-in-class enterprise risk management processes.

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 Managing Director of NSIA,  Aminu Umar-Sadiq stated, “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.”

NSIA in a statement noted that it remains focused on managing Nigeria’s sovereign wealth fund and delivering the mandates enshrined in the NSIA Act.

The NSIA is poised 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 the desired social outcomes in Nigeria.

On outlook, “The economic landscape of 2024 is expected to be dynamic, with various factors influencing its outcome. The Russia-Ukraine conflict is likely to continue impacting trade dynamics and geopolitical stability. In addition, the delayed resolution of the Israel-Hamas conflict might lead to more economic disruptions, humanitarian issues, and the potential for wider conflicts in the Middle East, leading to global disruptions in supply chains and trade.

“Furthermore, Central Banks in developed economies are expected to maintain vigilant measures to combat inflation, which could affect global liquidity and interest rates, while the ongoing trend of deglobalisation may reshape supply chains, cross-border investments, and market access.

“The fast-paced integration of AI technology across multiple sectors holds the potential to enhance global productivity while also disrupting traditional job structures.

“Amidst these complexities, strategic planning, effective risk and governance frameworks, and adaptability will be important.  ESG, Sustainability, and Climate finance will continue to play a vital role in our investment approach and strategy going forward. NSIA will continue to drive direct investments across its 5 core thematic areas.”