The Nigeria Sovereign Investment Authority (NSIA) says it recorded a total comprehensive income of ₦1.18trillion from its operations for 2023.
This was contained in the company’s audited financial results for the 2023 financial year released on Thursday in Abuja.
The spokesperson of NSIA, Joyce Onyegbula, said in a statement that the income was about 1,122 percent higher than the ₦96.96 billion the company realised in 2022.
Onyegbula said the impressive financial performance underscores the resilience of the NSIA’s investment strategy and the quality of its earnings, despite the challenging global macro-economic, and geo-political landscape.
Other highlights of the company’s activities and performance during the year showed that the latest performance followed a trend in 11 consecutive years of continuous positive earnings, with a cumulative annual growth rate of 117.3 percent.
The financial results showed NSIA’s Net Assets grew by 119 percent, from ₦1.02 trillion in December 2022, to ₦2.22 trillion in the corresponding period in 2023, with its Total Operating Income increasing from ₦101.1 billion in the previous year to ₦1.18 trillion.
Onyegbula explained that the total operating income included foreign exchange gains during the period, as a result of the company’s positive performance of its equities and fixed-income portfolios, as well as infrastructure investments.
Also, the report said NSIA’s core Total Comprehensive Income, excluding foreign exchange gains, rose by 670 percent, from ₦21.39 billion in 2022 to ₦164.69 billion, attributable to its robust strategic asset allocation and adherence to best-in-class enterprise risk management processes.
The Managing Director & Chief Executive Officer of NSIA, Aminu Umar-Sadiq, described the latest performance as excellent.
“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.”
Umar-Sadiq said the company remained firmly committed to catalysing positive socio-economic outcomes through critical infrastructure investments; strategic partnerships that expand its impact across pivotal sectors, and providing solutions that not only deliver NSIA’s mandate, but simultaneously uphold it’s environmental stewardship.
Looking ahead, he said the NSIA would continue to focus on creating shared prosperity for current and future generations of Nigerians.
Although he lamented the negative impact of the Nigerian business environment on disposable income of individuals and communities,
Sadiq-Umar said policy changes, including the redesign of the Naira notes, the removal of fuel subsidies, and the floating of the currency triggered high double-digit inflation rates of up to 30 percent and over a 100 percent devaluation of the Naira against the dollar.
These factors, he noted shaped the economic landscape throughout the financial year, adding that the situation was worsened by the escalating global geopolitical tension, surging natural disasters, and the growing trend of deglobalisation and trade protectionism.
Despite these challenges, the CEO said the NSIA Group’s net earnings at the close of 2023 climbed to ₦1.18 trillion, (Including ₦1.02 trillion foreign exchange gains), a remarkable increase of 1,122% compared to the ₦96.96 billion, (Including ₦75.6 billion foreign exchange gains) recorded in 2022.
A review of the Group’s performance during the financial year revealed Capital growth and preservation through focus on risk-adjusted returns. This, he said, involved optimisation of asset allocation and utilisation, retention of a significant portion of the assets under management in foreign-denominated investments, diversification of the portfolio to mitigate risk, and maintain an eye of a defensive investment strategy.
Besides, core operating income growth showed increased yields from short to medium-term investments, growing third-party mandates and other fiduciary activities, as well as strengthening earnings resilience by diversifying revenue sources.
Again, the company achieved infrastructure revenue growth by optimising existing impactful investment platforms to enhance efficiency and performance, while Well-diversified asset allocation techniques – resulted in improved risk-adjusted earnings from NSIA externally managed investments.
