The Nigeria Sovereign Investment Authority, which manages Nigeria’s sovereign wealth fund, has recorded a 10% growth in net assets from ₦919.73bn in 2021 to ₦1.02tn in the 2022 fiscal year. The audited results for the 2022 fiscal year, which were made public on Thursday, revealed this information.
Despite market fluctuations, the NSIA’s activities and performance during the period being reviewed indicated that it achieved its 10th consecutive year of positive earnings, as revealed in the report’s highlights. According to its 2022 report, the NSIA Group’s earnings amounted to N96.96bn, representing a 34% decrease from the N146.98bn recorded in 2021. The organization attributed the decrease in earnings to the performance of its investment portfolios. Specifically, the Future Generations and Stabilization portfolios, which invest in financial market instruments of both emerging and developed markets.
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Conversely, the NSIA experienced an increase in interest income, revenue from its infrastructure business, and management fees generated from fiduciary activities, which rose by 34.5% (amounting to ₦15.7bn) compared to the previous year.
According to Mr. Aminu Umar-Sadiq, the Managing Director and Chief Executive Officer, the NSIA’s performance was achieved despite the challenging operating environment.
He noted, “Against market expectations and internal forecast, NSIA closed the 2022 financial year with a respectable performance. This result underscores the robustness of our diversified portfolio and the excellent commitment of the team.
“As we look to the future, NSIA is resolute in its commitment to delivering increased investments in critical sectors of the economy, driving growth across its funds, and attracting third-party capital into Nigeria’s infrastructure sector. In 2023, we will be resourcing our various platforms targeted at emerging sectors – renewable energy, sustainability, innovation, and healthcare – which will ensure the Authority achieves its dual objectives of delivering financial returns and impactful social outcomes,” he noted further.
The report by NSIA noted that the 2022 fiscal year was marked by unprecedented shocks. These included the COVID-19 lockdown in China, the Russia-Ukraine conflict, food and energy crises, supply-chain disruptions, as well as rising inflation, and monetary policy tightening, which had an impact on financial markets.
NSIA reported that in 2022, it achieved a significant milestone in its infrastructure strategy by completing key projects. The projects spanned across key sectors of focus and involved the implementation of specialized initiatives by the federal government. The projects encompassed the agriculture sector, such as the Presidential Fertilizer Initiative, as well as the opening of the Pandagric Novum farm, which is a joint venture between NSIA and Signature Agri Investment. The farm specializes in cultivating maize and soybeans and is linked to a poultry feed mill with a capacity of 147,000 metric tons per annum.
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NSIA reported that it introduced the NSIA Prize for Innovation in the technology sector. This initiative was designed to encourage Nigerian innovators and technopreneurs to develop solutions that tackle real-world challenges with global applicability. The NPI program is a business development initiative aimed at providing support for early-stage, growth-oriented technology solutions via education, mentorship, and financing
