The Nigeria Sovereign Investment Authority has announced a 1,122 per cent increase in its total Comprehensive Income, which closed at N1.18trn for 2023, relative to N96.96bn reported in 2022.
This was contained in its 2023 audited financial results made available to The PUNCH on Friday.
The NSIA is an investment institution of the federation set up to manage funds over budgeted hydrocarbon revenues.
The document noted that n 2023, Total Comprehensive Income (excluding foreign exchange gains) rose from N21.39bn in the previous year to N164.69bn, marking a 670 per cent increase which was attributed to the authority’s strategic asset allocation and adherence to enterprise risk management processes.
In 2022, its Net Asset grew by 10.5 per cent to N1.02trn in (2021: N919.73bn).
Earnings from interest income, infrastructure business revenue, and fiduciary activities’ management fees increased by 34.5 per cent amounting to N15.7bn year-on-year growth while the Total Comprehensive Income closed at N96.96bn for 2022, a decline of 34.0 per cent relative to N147.98bn in 2021.
In 2023, substantial shifts in the Nigerian business environment impacted the disposable income of individuals and communities across the nation.
The Nigerian government instituted policy changes including the redesign of the Naira notes, the removal of fuel subsidies, and the floating of the currency.
The country, during the period, struggled with high double-digit inflation rates soaring up to 30 per cent and over a 100 per cent devaluation of the currency to the dollar.
Despite the challenges, the NSIA said the Net Assets grew by 119 per cent to N2.22trn as of December 2023 as against N1.02trn of the corresponding period the previous year.
The NSIA also posted total operating income, which increased from N101.1bn in the previous year to N1.18trn.
This includes foreign exchange gains during the period.
It attributes this rise to the positive performance of the equities and fixed-income portfolios, as well as the positive performance of NSIA’s infrastructure investments.
The result shows 11 straight years of continuous positive earnings with a cumulative annual growth rate of 117.3 per cent so far.
The Managing Director and Chief Executive Officer, NSIA, Aminu Umar-Sadiq, noted that the financial performance showed that NSIA has been resilient in its investment strategy and the quality of its earnings, despite the challenging global macro-economic, and geo-political landscape.
“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 catalysing 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.
“Looking ahead, we re-affirm our focus on creating shared prosperity for current and future generations of Nigerians,” he said.
The document highlights several factors which contributed to the group’s (Authority and Subsidiaries) performance during the 2023 financial year:
The NSIA said it has ensured capital growth and preservation through a focus on risk-adjusted returns – involving optimising asset allocation and utilisation, retaining a significant portion of the assets under management in foreign-denominated investments, diversifying the portfolio to mitigate risk, and maintaining a defensive investment strategy.
It noted that it was able to drive growth in core operating income by delivering increased yields from short to medium-term investments, growing third-party mandates and other fiduciary activities, and strengthening earnings resilience by diversifying revenue sources.
Also, it noted that infrastructure revenue grew by optimising existing impactful investment platforms to enhance efficiency and performance.
It added that its asset allocation techniques helped to improve risk-adjusted earnings from externally managed investments.
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