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…As Net Assets grow by 10.5% to N1.02 trillion in 2022.
…Commits to sustaining diversified assets strategy.
Nigeria Sovereign Investment Authority (NSIA/The Authority), manager of the nation’s Sovereign Wealth Fund has presented its 2022 Audited Financial Statements, the first under the new management of the Authority since assuming office.
The company said the 2022 financial statements indicate a continuity of the performance trajectory from the pioneer team to the current one and assures of continued high-quality and steady leadership for the Authority.
While briefing national and international media outfits in Abuja on the performance, Aminu Umar-Sadiq; Managing Director and Chief Executive Officer of the NSIA expressed his delight at having his first official interaction with the press at such an auspicious moment describing it as one he has looked forward to.
He thanked the bureau chiefs, Finance and business correspondents for the coverage the Authority has received in times past as well as the partnership in reporting the activities and milestones of the Authority over the years and stated that the doors of the NSIA are always open for enquiries. He reiterated the importance of a cordial relationship with the fourth estate as they are the ones who convey all that the NSIA does to its actual owners – Nigerians; of which they are a part.
‘Despite the VUCA (volatile, uncertain, complex, and ambiguous) nature of the markets in 2022, we continue to post positive earnings through effective management of the resources entrusted in our care coupled with the deft and harmonious working relationship of the Board, Executive Management, and partner institutions’.
‘We are in a fiduciary role for the people of Nigeria, current and future. We are guided by this every day as we recognize the urgent need to leverage the institution’s mandate and fund to support the country’s growth agenda. The results that we are presenting today are a continuation of the sterling foundation laid at the NSIA since inception. It is a legacy of achievement that we are sustaining and improving upon’.
He stated further, ‘we are committed to ensuring that Nigeria’s Sovereign Wealth Fund consistently ranks highly in the league of state-owned funds in terms of transparency, governance, and performance. Our foray into some new terrains underscores our resolve to ensure that optimal returns are generated through responsible investing. For emphasis, we have on behalf of the present and future generations expanded our focus sectors to include climate finance, renewable energy, innovation, and technology. This is in addition to the priority sectors we had maintained over the years namely agriculture, motorways, power, healthcare, and gas industralisation.
Some highlights are:
Recorded 10th straight year of continuous positive earnings despite volatility and headwinds across global markets.
Net Asset grew by 10.5% to N1.02 trillion in 2022 (2021: N919.73 billion).
Earnings from interest income, infrastructure business revenue, and fiduciary activities’ management fees increased by 34.5% amounting to N15.7 billion yearonyear growth.
Total Comprehensive Income closed at N96.96 billion for 2022, a decline of 34.0% relative to N147. 98 billion in 2021.
The MD & CEO was supported during his presentation by Mrs. Olubisi Makoju, Executive Director, Corporate Services and Operations who shed more light on the financial performance for the year and Mr. Kolawole Owodunni, Executive Director and Chief Investment Officer who profiled the Authority’s investment strategy and fund performance within the context of the operating environment.
The MD closed with an outlook statement in which he stated that the Authority’s 2023 strategy will focus on:
Driving growth through platforms
Assessing exit opportunities from existing investments
Attracting local currency capital
Increasing third-party asset management portfolio
Leveraging ESG as an asset class
Market Overview & Performance Summary
The 2022 fiscal year was marked by unprecedented shocks, such as the COVID-19 lockdown in China, the Russia-Ukraine conflict, food and energy crises, supply-chain disruptions, soaring inflation, and monetary policy tightening, which precipitously impacted the global financial markets.
Like other emerging and frontier markets, the Nigerian economy faced multi-dimensional challenges during the year. From surging inflation primarily driven by high cost of petroleum products and food prices to declining oil output and weakening currency, thus the prospect for growth diminished as the year wound down.
The reduction in the Group earnings in 2022 was primarily attributable to the decline in the performance of the Future Generations and Stabilization funds invested in emerging and developed financial market instruments and exposed to volatility issues within the global markets. It is however noteworthy that earnings from interest income, infrastructure business revenue, and fiduciary activities’ management fees increased by 34.5% (N15.7 billion) yearonyear. These returns provided the needed diversification of the Group’s revenue base and cushioned the effect of the decline in the earnings from the market facing assets.
NSIA remains confident in its investment strategy and will continue to explore opportunities to mitigate risks and drive financial performance.
About the Nigeria Sovereign Investment Authority
Nigeria Sovereign Investment Authority 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 stabilization support in times of economic stress.
NSIA operates three mandate funds: The Stabilization Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund. For more information, please visit www.nsia.com.
Picture: NSIA MD/CEO Aminu Umar-Sadiq
