NSIA Grows Net Assets By 19%

The Nigeria Sovereign Investment Authority, NSIA has grown its net assets to N919.73 billion in 2021, from N772.75 billion posted in 2020.

The growth represented a 19 percent increase in net assets.

Also, NSIA recorded continuous earnings for the 9th year, despite risks across markets in the last nine years.

NSIA is Nigeria’s investment institution set up to manage funds in excess of budgeted hydrocarbon revenues.

A report released by Managing Director/Chief Executive Officer, Uche Orji, showed that NSIA recorded total comprehensive income of N147.0 billion in 2021, including forex gains of N45.8 billion in the year under review.

He also revealed that it recorded total operating income of N100.8 billion in 2021, excluding forex gains.

Orji said the NSIA delivered a strong performance in 2021, noting that “the results are in line with the Authority’s expectations.”

He noted that the performance of the authority’s developed market investments “were offset by challenges in our emerging market asset allocation, particularly in China equities, which saw significant underperformance by technology company stocks.”

On what to expect this year and in the coming years, he said: “Looking ahead to 2022 and beyond, we believe inflationary pressures will persist for much of this year, affecting the performance of all asset classes.”

He, however, said the NSIA remained “committed to strengthening the Authority’s performance by strengthening our risk management teams.”

On the plan, he said: “In addition to expanding our direct investment footprint in innovation and technology in Nigeria, we have also designated ESG as an investment focus area. We will remain unrelenting in our quest to deliver the Authority’s clear 3-fold mandate. I am confident that the actions we are taking will create value for all our stakeholders in the medium to long term.”

Breaking down the performance, he said in the areas of Nigeria Infrastructure Fund, NIF, the NSIA reached major milestones across domestic infrastructure projects specifically in motorways, agriculture, healthcare, technology, and gas industrialisation, among others.

On agriculture, he said 51 blending plants had been included in the programme, starting from 11 in 2017.

“The operating entity of the programme NAIC-NPK (now PFI-NPK) has been divested to the Ministry of Finance Incorporated (MOFI) and is being managed by the Authority as a third-party asset.  The restructured entity also turned a profit for the first time which is remarkable for what has been perennially a subsidized programme,” he said.