This was contained in its 2023 audited financial results
made available on Friday.
The NSIA is an investment institution of the federation set
up to manage funds over budgeted hydrocarbon revenues.
The document noted that n 2023, Total Comprehensive Income
(excluding foreign exchange gains) rose from N21.39bn in the previous year to
N164.69bn, marking a 670 per cent increase which was attributed to the
authority’s strategic asset allocation and adherence to enterprise risk
management processes.
In 2022, its Net Asset grew by 10.5 per cent to N1.02trn in
(2021: N919.73bn).
Earnings from interest income, infrastructure business
revenue, and fiduciary activities’ management fees increased by 34.5 per cent
amounting to N15.7bn year-on-year growth while the Total Comprehensive Income
closed at N96.96bn for 2022, a decline of 34.0 per cent relative to N147.98bn
in 2021.
In 2023, substantial shifts in the Nigerian business
environment impacted the disposable income of individuals and communities
across the nation.
The Nigerian government instituted policy changes including
the redesign of the Naira notes, the removal of fuel subsidies, and the
floating of the currency.
The country, during the period, struggled with high
double-digit inflation rates soaring up to 30 per cent and over a 100 per cent
devaluation of the currency to the dollar.
Despite the challenges, the NSIA said the Net Assets grew by
119 per cent to N2.22trn as of December 2023 as against N1.02trn of the
corresponding period the previous year.
The NSIA also posted total operating income, which increased
from N101.1bn in the previous year to N1.18trn.
This includes foreign exchange gains during the period.
It attributes this rise to the positive performance of the
equities and fixed-income portfolios, as well as the positive performance of
NSIA’s infrastructure investments.
The result shows 11 straight years of continuous positive
earnings with a cumulative annual growth rate of 117.3 per cent so far.
The Managing Director and Chief Executive Officer, NSIA,
Aminu Umar-Sadiq, noted that the financial performance showed that NSIA has
been resilient in its investment strategy and the quality of its earnings,
despite the challenging global macro-economic, and geo-political landscape.
“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.
“We remain firmly committed to catalysing positive
socio-economic outcomes through critical infrastructure investments; strategic
partnerships that expand our impact across pivotal sectors; and solutions that
not only deliver our mandate but simultaneously uphold environmental
stewardship.
“Looking ahead, we re-affirm our focus on creating shared
prosperity for current and future generations of Nigerians,” he said.
The document highlights several factors which contributed to
the group’s (Authority and Subsidiaries) performance during the 2023 financial
year:
The NSIA said it has ensured capital growth and preservation
through a focus on risk-adjusted returns – involving optimising asset
allocation and utilisation, retaining a significant portion of the assets under
management in foreign-denominated investments, diversifying the portfolio to
mitigate risk, and maintaining a defensive investment strategy.
It noted that it was able to drive growth in core operating
income by delivering increased yields from short to medium-term investments,
growing third-party mandates and other fiduciary activities, and strengthening
earnings resilience by diversifying revenue sources.
Also, it noted that infrastructure revenue grew by
optimising existing impactful investment platforms to enhance efficiency and
performance.
It added that its asset allocation techniques helped to
improve risk-adjusted earnings from externally managed investments.
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