Nigeria Sovereign Investment Authority Posts Net Returns of N1.88T
The Nigeria Sovereign Investment Authority (NSIA) says it posted a net return of N1.88 trillion for financial year 2024, up from the N1.18 trillion recorded in 2023.
The managing director/CEO of NSIA, Aminu Umar-Sadiq, disclosed this while presenting its 2024 earnings at a media engagement on Wednesday in Abuja. Umar-Sadiq said the NSIA showed strong financial performance in spite of the volatile global economic landscape.
He said the authority was able to achieve this through a dedicated and committed team that adopted four tactical and change strategies in 2024. “2024 was special because we found a way to enhance a set of 2023 results that were remarkable.
“We went from net returns of N1.18 trillion in 2023 to N1.885 trillion in 2024. We will continue to wonder how we will top that in 2025 but with the combination of teams.
“On a tactical basis, we have done four things right.
“Firstly, there is efficient balance sheet optimisation. We continue to be defensive, particularly on our stabilisation and future generation funds. Secondly, we focused on sustainable earning on the infrastructure side; thirdly, we focused on pioneering infrastructure investment; and lastly, cost efficiency.”
Umar-Sadiq said in 2024, the authority inaugurated the Ministry of Health Oncology initiative, aimed at building one world-class oncology centre in each zone on behalf of the Federal Government.
He said the NSIA recorded a 150 per cent increase in returns on Core Total Comprehensive Income(TCI) growth in 2024. “ We had N165 billion in terms of Core TCI in 2003 and we are at N407.9 billion in 2024.
“ This increase of 150 per cent on core basis, when you strip out the impact of foreign exchange gains and derivative valuation gains, you see core basis increased our returns by 150 per cent.
“That goes to show the strength of the institution not only on the operational or infrastructure side but more importantly on the financial performance side.“
The managing director said in 2025, the NSIA would drive three key things, which include driving certain NSIA platforms, augmentation of its capital(growing on a Naira and Dollar basis ) and core income growth.
Victor Sesere, Chief Financial Officer, NSIA, said the operating income of the authority grew by 58 per cent on a year-on-year basis, from N1.176 trillion in 2023 to N1.853 trillion in 2024.
Sesere said the operating income growth was driven by strong performance across major income lines, with both market-sensitive and stable revenue lines achieving above single-digit increases.
He said the authority recorded a 59 per cent increase in its Profit After Tax in 2024 on a year-on-year basis from N1.185 trillion in 2023 to N1.886 trillion in 2024.
“Total assets grew by over 90 per cent, primarily driven by increased investment in securities and the revaluation of foreign currency-denominated assets.
“ In spite of the impact of foreign exchange gains on this year’s TCI, NSIA achieved its strongest performance in Core TCI in 2024, underscoring management’s commitment to generating stable, non-volatile earnings.”
Sesere said the total contribution the NSIA had received from the Federal Government cumulatively was 1.8 billion dollars, while it had retained and further reinvested one billion dollars cumulatively into the business.
“So we have actually made an extra one billion dollars, and if you add that together, that gives you what our total net assets is, which is 2.8 billion dollars.”
Mr Kolawole Owodunni, the Executive Director and Chief Investment Officer, said the NSIA had three core funds which included the Stabilisation Fund, Future Generations Fund and the Nigeria Infrastructure Fund(NIF).
Owodunni said that the NIF was anchored on three pillars which are direct investment, co-investment and creation of institutions.
“ For our investment strategy, we look for projects that have nationwide strategic impact, attract foreign and local capital, attract commercial and social returns, and projects that have a conducive legal and regulatory environment.”
Owodunni listed some key projects under the NIF including the MEDSERVE, which aims to establish 23 diagnostic centres, seven catheterisation labs, and three oncology centres across the six geopolitical zones and the FCT.
Ijeoma Taylaur, the Chief Operating Officer, NSIA, said beyond providing financial returns to stakeholders, the authority was focused on driving value and enhancing performance as well as preserving capital.
“We do this through many strategies which include risk management by minimising losses.”
Taylaur said the authority was driving value creation through subsidiaries.
“For over a decade, NSIA successfully built and nurtured a diverse portfolio of subsidiaries across various sectors that contribute meaningfully to the national economy.
“Our approach is rooted in strong governance, robust risk management, and a strong operational focus. These have enabled us to optimize performance while adhering to our long-term strategic objectives.”
She listed some subsidiaries to include Green Guarantee Company, Development Bank of Nigeria, Nigeria Infrastructure Debt Fund, NSIA Prize for Innovation, Presidential Fertilizer Initiative and Nigeria Mortgage Refinance Company. FG Tasks NBTI on Research-Based Solutions to Insecurity, Agric Sector Challenges
