By Tony Obiechina, Abuja
The Nigeria Sovereign Investment Authority ( NSIA) recorded a total income of N57.73 billion in 2018 as against N30.73 billion made the previous year thus achieving 88.5 percent growth rate.
The Managing Director of NSIA, Dr. Uche Orji who announced this on Monday at the presentation of its audited financial report for 2018 said this achievement was recorded despite local and foreign challenges that stifled investment.
According to him, Nigeria’s investment outlet recorded a higher earned interest income sum of N23.82 billion (a component of Total income) in 2018, representing 9% year-on-year increase from the N21.77 billion in 2017, a feat Orji said “underscores the agency commitment to generate fixed income returns from low-risk securities that generate predictable interest, and steady returns including Eurobonds, Treasury bills and other secured deposits”.
Orji who addressed the media in Abuja, said: “within the year, the Authority committed significant capital across all three ring-fenced funds and gained traction within the Nigeria Infrastructure Fund (NIF) as commitments were being made on approved project/investment opportunities. With respect to the other funds, the Authority continued to operate a diverse and global investment portfolio of traditional and alternative assets”.
Presenting the financial highlight of NSIA performance in the year under review, Orji said Authority recorded increase in comprehensive income (including the impact of foreign exchange gains) of N44.34 billion as against 2017 figure of N27.93 billion. It recorded gain in total comprehensive income (excluding the impact of foreign exchange gains) of N26.29 billion as against previous year figure of N26.28 billion.
It’s total assets recorded a growth of 16% to N617.70 billion at year end compared to previous year figure of N533.88 billion. The three funds of NSIA – stabilisation fund, future generations funds and Infrastructure Fund recorded positive trajectory in the review year.
According to him, Stabilisation Fund (100% Funds deployment) recorded 7.2% deployment, future generations fund recorded 81% fund deployment) while 8.3% Nigeria Infrastructure Fund (17% fund deployment) having 7.7% increased focus on domestic infrastructure projects specifically in agriculture, healthcare, and infrastructure enabling financial institutions.
On NSIA funding of key projects, especially in health ,agriculture and roads, Orji said key projects financed by the agency are at various completion said while some are about to commence service delivery to the public.
“We have reached financial close on three healthcare projects. These include, a Cancer Centre at Lagos University Teaching Hospital (LUTH) , Advanced Diagnostic Centres at Federal Medical Centre Umuahia (FMCU) and Aminu Kano Teaching Hospital (AKTH). We have commissioned the LUTH cancer Centre. The facility will soon be fully open for clinical operations”.
” There is Presidential fertiliser initiative. We have increased output with approximately 12 million bags of fertiliser produced to date with a total of 18 blending plants participating. The Presidential Infrastructure Development Fund (PIDF), we received $ 650million from National Economic Council ( NEC) and NSIA commenced capital deployment across three of the major road projects under PIDF . The roads include, the 2nd Niger Bridge, Lagos – Ibadan Expressway and Abuja-Zaria-Kaduna-Kano road “, Orji said.
He said the $1.5 billion seed capital government invested at the start of NSIA has added over $300 million assuring a positive outlook in 2019.
“The global market in 2018 experienced high volatility, however 2019 is expected to return to a relatively stable terrain. The Authority continues to monitor the market conditions with the view to leverage the upside risks that avail themselves in the market. We expect that our strategy will continue to deliver positive returns. The deployment of the Presidential Infrastructure Development Fund will play a key part of our infrastructure investment strategy for the year.
“Healthcare remains a focus area going forward with the implementation of next phase of diagnostic and treatment centres. The Board has also approved Gas industralisation as an area of focus. Increased focus and capital deployment in Infrastructure is likely to affect future returns “, he added.
NSIA was established in 2011 with the mandate to manage funds in excess of budgeted hydrocarbon revenues. It operates three mandate funds namely, the Stabilisation Fund, the Future Generations Fund and the Nigeria Infrastructure Fund.
