The Nigeria Sovereign Investment Authority (NSIA), manager of the country’s Sovereign Wealth Fund (SWF), has reported a remarkable 1,122% surge in its total Comprehensive Income, closing at ₦1.18 trillion for 2023, compared to ₦96.96 billion in 2022, according to its 2023 audited financial results released Thursday night.
Total Comprehensive Income (excluding foreign exchange gains) soared from ₦21.39 billion in the previous year to ₦164.69 billion, marking a 670% increase attributed to the Authority’s robust strategic asset allocation and adherence to best-in-class enterprise risk management processes. Net Assets grew by 119% to ₦2.22 trillion as of December 2023 compared to ₦1.02 trillion in the corresponding period the previous year. Additionally, the NSIA posted total operating income, which surged from ₦101.1 billion in the previous year to ₦1.18 trillion, inclusive of foreign exchange gains during the period. This significant rise was attributed to the positive performance of equities and fixed-income portfolios, as well as infrastructure investments.
The impressive results mark eleven straight years of continuous positive earnings with a cumulative annual growth rate of 117.3% so far.
Aminu Umar-Sadiq, Managing Director & Chief Executive Officer of NSIA, noted that 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.
He remarked, “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 catalyzing 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.”
In the breakdown of the financials, several key highlights contributed to the Group’s (Authority and Subsidiaries) performance during the 2023 financial year.
NSIA ensured capital growth and preservation through a focus on risk-adjusted returns, driving growth in core operating income, optimizing existing impactful investment platforms to enhance efficiency and performance, and maintaining cost optimization.
Established in 2012 with a $1bn seed capital, NSIA operates three mandate funds – the Stabilisation Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund (NIF). The NIF in 2023 pivoted to a thematic approach to investing, prioritizing trends and long-term growth potential across five strategic thematic areas. Additionally, the Future Generations Fund attained its highest annual return since its establishment.
NSIA reaffirmed its commitment to driving direct investments across its five core thematic areas of Agriculture, Healthcare, Power, Toll Roads, and Gas Industrialization, all implemented under the infrastructure fund.
