By Tony Obiechina, Abuja
The Nigeria Sovereign Investment Authority (NSIA) has announced audited results for the 2023 financial year with total operating income rising to N1.18 trillion.
NSIA’s total Operating Income increased from ₦101.1 billion in the previous year to ₦1.18 trillion, inclusive of foreign exchange gains during the period, a statement from the Authority has said.
This significant rise was attributed to the positive performance of the equities and fixed-income portfolios, as well as the positive performance of NSIA’s infrastructure investments.
The financial performance underscores the resilience of the NSIA’s investment strategy and the quality of its earnings, despite the challenging global macro-economic, and geo-political landscape.
Highlights of the Authority’s activities and performance during the period include
2023 FY Financial Results with the Authority recording 11 consecutive years of continuous positive earnings with a cumulative annual growth rate of 117.3%.
It’s net Assets grew 119% to ₦2.22 trillion in Dec-23 (Dec-22: ₦1.02 trillion). The total Comprehensive Income closed at ₦1.18 trillion for 2023, a growth of 1,122% relative to ₦96.96 billion in 2022.
The core total Comprehensive Income (excluding foreign exchange gains) roset from ₦21.39 billion in the previous year to ₦164.69 billion, marking a 670% increase attributable to the Authority’s robust strategic asset allocation and adherence to best-in-class enterprise risk management processes.
The Managing Director & Chief Executive Officer, Mr. Aminu Umar-Sadiq remarked, “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.”
Market Overview & Performance Summary
In 2023, substantial shifts in the Nigerian business environment impacted the disposable income of individuals and communities across the nation. The Nigerian government instituted new 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% and over a 100% devaluation of the currency to the USD. These factors shaped the economic landscape throughout the year.
Additionally, the global economy grappled with hurdles on its path to recovery, including escalating geopolitical tension, surging natural disasters, and the growing trend of deglobalisation and trade protectionism. The US Federal Reserve announced aggressive interest rate hikes to tame inflation, sending shockwaves through the global banking industry.
Despite these challenges, NSIA Group’s net earnings at the close of 2023 amounted to ₦1.18 trillion, (Incl. ₦1.02 trillion foreign exchange gains) marking a remarkable increase of 1,122% compared to the ₦96.96 billion, (Incl. ₦75.6 billion foreign exchange gains) recorded in 2022. Several key highlights contributed to the Group’s (Authority and Subsidiaries) performance during the 2023 financial year.
