By Uche Usim
The Nigeria Sovereign Investment Authority (NSIA/The Authority), manager of the nation’s Sovereign Wealth Fund, on Thursday, disclosed that its net assets grew by 10.5% to N1.02 trillion in 2022; up from N919.73 billion in 2021.
It also committed to sustaining a diversified assets strategy.
These were disclosed by NSIA Managing Director, Aminu Umar-Sadiq at the media parley with finance journalists where he unveiled the 2022 financial statements.
He also disclosed that earnings from interest income, infrastructure business revenue, and fiduciary activities’ management fees increased by 34.5% amounting to N15.7 billion year-on-year growth.
“Total Comprehensive Income closed at N96.96 billion for 2022, a decline of 34.0% relative to N147. 98 billion in 2021”, he added.
Umar-Sadiq noted that despite the VUCA (volatile, uncertain, complex, and ambiguous) nature of the markets in 2022, the Authority continued to post positive earnings through effective management of the resources
entrusted in its care; coupled with the deft and harmonious working relationship of the Board, Executive Management, and partner institutions.
He added that like other emerging and frontier markets, the Nigerian economy faced multi-dimensional
challenges during the year.
“From surging inflation primarily driven by high cost of petroleum
products and food prices to declining oil output and weakening currency, thus the prospect
for growth diminished as the year wound down.
“The reduction in the Group earnings in 2022 was primarily attributable to the decline in the
performance of the Future Generations and Stabilization funds invested in emerging and
developed financial market instruments and exposed to volatility issues within the global
markets. It is however noteworthy that earnings from interest income, infrastructure business revenue, and fiduciary activities’ management fees increased by 34.5% (N15.7 billion) year-
on-year.
“These returns provided the needed diversification of the Group’s revenue base and
cushioned the effect of the decline in the earnings from the market facing assets. NSIA remains confident in its investment strategy and will continue to explore opportunities to mitigate risks and drive financial performance.
“We are in a fiduciary role for the people of Nigeria, current and future. We are guided by
this every day as we recognize the urgent need to leverage the institution’s mandate and
fund to support the country’s growth agenda. The results that we are presenting today are
a continuation of the sterling foundation laid at the NSIA since inception. It is a legacy of
achievement that we are sustaining and improving upon’.
He stated further, ‘we are committed to ensuring that Nigeria’s Sovereign Wealth Fund
consistently ranks highly in the league of state-owned funds in terms of transparency,
governance, and performance. “Our foray into some new terrains underscores our resolve to
ensure that optimal returns are generated through responsible investing. For emphasis, we
have on behalf of the present and future generations expanded our focus sectors to include; climate finance, renewable energy, innovation, and technology. This is in addition to the priority sectors we had maintained over the years namely agriculture, motorways, power, healthcare, and gas industralisation”, he said.
On the Authority’s 2023
strategy, he said it will focus on: Driving growth through platforms; assessing exit opportunities from existing investments; attracting local currency capital; among others.