NSIA Records N1.6tr Comprehensive Income in 2023
…Invests Over $500 Million Domestically
By Patience Ikpeme
The Nigeria Sovereign Investment Authority (NSIA) has reported a substantial increase in Core Total Comprehensive Income which soared to N1.6 trillion in 2023 from N21.398 billion in 2022, marking a remarkable 670 percent growth.
Managing Director of the NSIA Aminu Umar Sadiq unveiled the NSIA’s 2023 financial results in Abuja, highlighted a diverse income portfolio.
The Authority’s income sources encompass interest from Eurobonds, Fixed Deposits (FDs), Commercial Papers (CPs), and bank balances, along with returns from Federal Government of Nigeria (FGN) bonds and bills, US Treasury securities, investment dividends, distribution income, net gains on securities valuation, and other Fair Value Through Profit or Loss (FVTPL) assets. Net foreign exchange gains further contributed to this robust income.
This diversified revenue stream has enabled the NSIA to effectively manage expenses while supporting its mission and operations efficiently.
The headline figures also revealed a substantial increase in net assets, rising from N156 billion in 2013 to N2.2 trillion in 2023.
Mr. Sadiq emphasized NSIA’s commitment to asset growth and value creation within the economy over the past decade. He stated, “Through capital preservation and a diversified portfolio of assets, coupled with an enterprise approach to risk management, NSIA has grown its net asset base to $2.47 billion as of December 2023.”
In a significant milestone, NSIA received its first royalty by price payment from the Nigeria Upstream Petroleum Regulatory Agency (NUPRC) in 2023, totaling $45.59 million as per the Petroleum Industry Act.
The NSIA’s commitment to supporting Nigeria’s infrastructure development was underscored by Mr. Sadiq, who announced over $500 million invested directly in domestic infrastructure projects during 2023. This targeted investment is poised to strengthen the nation’s infrastructure landscape significantly.
Moreover, NSIA’s impact extends beyond direct investments, catalyzing over $1 billion in third-party investments. By fostering an attractive investment environment, NSIA leverages its resources to attract substantial additional capital for critical projects.
Mr. Sadiq confirmed NSIA’s dedication to fostering domestic private equity, with investments made in over 50 percent of locally owned and operated private equity funds.
This targeted support bolsters the local financial ecosystem and empowers indigenous businesses to contribute to national development.
Sadiq noted that transparency remains a cornerstone of NSIA’s success, as highlighted in the report, this he said will foster trust with stakeholders and pave the way for continued growth.
Despite global challenges in 2023, including tightening monetary policies, economic slowdowns, and Nigeria’s political transition, NSIA’s effective investment strategies delivered positive results.
Looking ahead to 2024, NSIA outlined strategic priorities focused on fiscal responsibility, attracting foreign capital, integrating Environment Sustainability and Governance (ESG) principles, maintaining strong financial performance, enhancing project execution capabilities, operationalizing subsidiaries effectively, optimizing operational efficiency, driving innovation and strategic growth, and fostering strong relationships with regulators and partners.
Mr. Sadiq affirmed NSIA’s commitment to solidifying its position as a responsible and impactful investor, driving economic development and creating a brighter future for Nigeria through these strategic initiatives.
