By Bassey Udo
The Nigeria Sovereign Investment Authority (NSIA) on Monday stretched its profitability to its 12th consecutive year with cumulative retained earnings of ₦3.74 trillion as at the end of 2024 financial year.
Highlights of its latest audited financial results for the 2024 fiscal year from its operations and performance during the period showed that its total operating profits, excluding share of profits from associates and Joint Venture (JV) entities, grew from ₦1.17 trillion in 2023 to ₦1.86 trillion in 2024.
The growth, it said, was driven by the strong performance of the Authority’s diversified investment portfolio, robust infrastructure assets, gains from foreign exchange movements and derivative valuations.
Details from the performance showed total comprehensive income (TCI), inclusive of share of profits from associates and JV entities, reached ₦1.89 trillion in 2024, reflecting a 59 percent increase from ₦1.18 trillion recorded in 2023.
Also, the report showed that core TCI (excluding foreign exchange and derivative valuation gains) rose by 148 percent to ₦407.9 billion in 2024 above 2023 figures of ₦164.7 billion.
The performance, it explained, was supported by robust returns on financial assets measured at fair value through profit and loss, including collateralized securities, private equity, hedge funds, and Exchange -Traded Funds (ETFs).
Besides, the report said net assets nearly doubled, increasing by 96 percent, to ₦4.35 trillion as of December 2024, compared to ₦2.22 trillion in December 2023.
“These results underscore the resilience of NSIA’s investment strategy and the strength of its earnings, driven by a well-diversified revenue base and robust risk management practices, despite a challenging global macroeconomic and geopolitical environment,” the agency said.
The Managing Director/Chief Executive Officer, Aminu Umar-Sadiq who described the Authority’s financial performance in 2024 as outstanding, said it’s a reflection of the strength of the agency’s strategic vision, disciplined execution and unwavering commitment to sustainable socio-economic advancement.
“By leveraging innovation, strategic partnerships and sound risk management, we have not only delivered strong returns, but also created value for our stakeholders,” Umar-Sadiq said.
“As we move forward, we remain focused on driving economic transformation, expanding opportunities, scaling transformative impact and ensuring long-term prosperity for current and future generations of Nigerians,” he added.
On governance, the MD reported that during the financial year under review, a new Board of Directors was appointed by President Bola Tinubu, in accordance with the provisions of the NSIA Act, with Olusegun Ogunsanya as Chairman.
The new Board, he noted, would provide strategic direction and oversight to the day-to-day business, in addition to playing a pivotal role in critical decision making processes.
Under the guidance of the Board, the MD said the Authority would retain focus on its primary mandate of creating shared value for all stakeholders based on its continued adoption of corporate governance practices.
“NSIA remains committed to its mandate of prudent management and investment of Nigeria’s sovereign wealth. In adherence to its Establishment Act, NSIA prioritises transparency, disclosure, and effective communication with all stakeholders and counterparties,” he assured.
Looking forward, the MD said the Authority remains committed to focusing on managing Nigeria’s sovereign wealth fund and delivering the mandates enshrined in the NSIA Act.
He said the NSIA was poised to continually create long-term value for its stakeholders by delivering excellent risk-adjusted financial results, developing a healthy and well-diversified portfolio of assets and large-scale infrastructure projects, as well as enhancing the desired social outcomes in Nigeria.
The NSIA is an investment institution of the Federation set up to manage funds in excess of budgeted hydrocarbon revenues.
Its mission is to play a leading role in driving sustained economic development for the benefit of all Nigerians through building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure, and providing stabilisation support in times of economic stress.
NSIA operates three mandate funds: The Stabilisation Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund.