By Sanya Ademiluyi,editor
The Nigerian Sovereign Investment Authority, NSIA has declared a net profit of N1.88 trillion for last year,2024.NSIA managing director/CEO,Aminu Umar- Saddiq who made the disclosure at a press conference in Abuja, said that the year’s profit of N1.88 trillion was a 59 per cent increase over the NSIA’s operating profit for the previous year,2023 which was N1.16 trillion.
Umar-Saddiq noted that in spite of the modest percent age return on its operating profits,over that of the previous year, the NSIA yet achieved an above average increase of 148 percent on its core capital which increased from N164.7 billion in 2023 to N408 billion last year. Known as Core Total Comprehensive Income, Core TCI, it excludes forex and derivative valuation gains.
The NSIA stated in its financial report for the year that its earnings, excluding foreign exchange gains amounted to N1.477 trillion. Whereas, its stated foreign exchange gain for the year amounted to N859.4 billion .The authority also pulled in N92.9 billion as its share from profits made by subsidiaries such as InfraCredit and MMRC.The Authority’s Infrastructure businesses earned a modest N14.1 billion during the year under review,according to the financial results released by the NSIA.
The Authority operates three’ ring-fenced’ funds -The Future Generations Fund,the Infrastructure Fund and the Stabilization Fund.According to the NSIA managing director.The FutureGeneration Fund which takes 40 per cent of the authority’s capital is largely a long term savings and investment for future generations of Nigerians,while the Infrastructure Fund aimed at financing local infrastructure especially road construction takes 40 per cent.The other 20 per cent is devoted to the Stabilisation Fund which is a short term investment fund that assists government to meet financial obligations during tough economic times.
“We often adopt a defensive investment strategy, which most times, may not bring big returns unlike those sovereign funds that adopt a very aggressive investment strategy.But we are being careful about our risk,”said Umar-Saddiq.
Umar-Saddiq led the top management of the NSIA which included its Chief Operating Officer,Ijeoma Taylor ,Kola Owodunni,Executive director/Chief Investment Officer, Chief Investment Officer Victor Shesere and Chief Legal Counsel/ Company Secretary, Izoma Okorafor to the meeting.
A new board of directors was also appointed by the President for the NSIA in the last quarter of the year.The Chairman of the board is Mr Segun Ogunsanya,who recently retired as the Managing Director/CEO of Airtel Nigeria.Eight other directors were also appointed to the board.
Reviewing NSIA partnerships another business achievements, Chief Operating officer, Ijeoma Taylor pointed to the successes of the authority’s ventures such as InfraCredit, Development bank of Nigeria,DBN, which was set up 10 years ago and has given out loans to support over 500 micro to medium scale businesses in the country.Another NSIA creation,Nigerian Mortgage Refinance
Company is to deepen pool of funds for mortgage finance has provided over N33 billion for mortgage refinance to the market which has
Provided critical market liquidity,according to Taylor.The Family Home Fund,another NSIA venture ,set up eight years ago has also assisted in providing housing to Nigerians in the low income bracket, Taylor said
Medserve , the authority’s venture with a mission to provide world class medical oncology(cancer treatment) services to Nigerians has also been making good progress.It aims to develop 23 new oncology centres in the six geo-political zones of the country,according to NSIA’s COO.
InfraCredit ,the authority’s key subsidiary has been listed on the NASD exchange platform, few weeks ago while the NSIA has been able to reduce its equity holding from 100 per cent to 37 per cent in the company, according to Umar-Saddiq.
On the authority’s management of the National Fertilizer Initiative, Umar-Saddiq said that the NSIA was “no longer needed in the fertilizer business” and the NSIA was “pulling back from financing fertilizer blenders.”
Going forward, Umar-Saddiq said that the authority has adopted a 5 year rolling plan that would guide its activities, in the next five years.
Total assets of the NSIA are currently put at N4.4 trillion. Government equity has grown from initial US$1 billion to US$1.8 billion by 2024,according to Umar-Saddiq.”more government investment is needed in the NSIA, to raise its capital,” he said.
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