NSIA’s Income Soars to ₦1.18tr in 2023
By Patience Ikpeme
The Nigeria Sovereign Investment Authority (NSIA) has reported an increase in total operating income from ₦101.1 billion in the previous year to an impressive ₦1.18 trillion in 2023.
This surge in income was attributed to the positive performance of equities and fixed-income portfolios, coupled with successful infrastructure investments.
The Authority’s total comprehensive income for 2023 closed at ₦1.18 trillion, marking an astounding growth of 1,122% compared to ₦96.96 billion recorded in 2022. NSIA’s core total comprehensive income, excluding foreign exchange gains, saw a remarkable increase from ₦21.39 billion to ₦164.69 billion, reflecting a 670% rise driven by robust strategic asset allocation and effective risk management practices.
Managing Director and Chief Executive Officer of NSIA, Mr. Aminu Umar-Sadiq, expressed satisfaction with the outstanding results, attributing them to the “Authority’s prudent investment strategies and commitment to excellence over the past decade”. He emphasized NSIA’s dedication to fostering positive socio-economic outcomes through critical infrastructure investments and strategic partnerships, while also prioritizing environmental stewardship.
Despite challenging economic conditions both domestically and globally, NSIA Group’s net earnings for 2023 amounted to ₦1.18 trillion, showcasing resilience amidst uncertainties. The Nigerian business environment witnessed significant shifts, including policy changes by the government such as currency redesign, fuel subsidy removal, and currency floating, leading to high double-digit inflation rates and currency devaluation against the USD.
Globally, geopolitical tensions and natural disasters posed additional obstacles to economic recovery, prompting aggressive interest rate hikes by the US Federal Reserve to combat inflation. However, NSIA’s net earnings remained robust, driven by strategic initiatives and diversified investment portfolios.
NSIA’s infrastructure strategy focused on direct investment, co-investment, and institution creation, pivoting to a thematic approach in 2023. Major milestones included the completion of key national road projects, establishment of medical service centers, and initiatives to promote renewable energy and climate finance projects.
With regards to Future Generations Fund (FGF) and the Stabilisation Fund (SF) both funds achieved significant returns, with FGF recording its highest annual return since inception, while SF outperformed expectations, surpassing its benchmark by seven hundred basis points.
In terms of governance, NSIA emphasized transparency, disclosure, and effective communication with stakeholders, despite the dissolution of the Board in 2023. Looking forward, NSIA reiterated its commitment to managing Nigeria’s sovereign wealth fund and delivering long-term value through prudent investment strategies and social impact initiatives.
The economic outlook for 2024 the NSIA said remains dynamic, with geopolitical tensions, inflation concerns, and technological advancements shaping global markets. NSIA reaffirmed its focus on ESG, sustainability, and climate finance, while continuing to drive direct investments across key thematic areas.
