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The Nigeria Sovereign Investment Authority, NSIA, manager of Nigeria’s sovereign wealth fund, has announced its audited results for the 2022 financial year.
In a statement on its website, the authority said the financial performance underscores the resilience of the NSIA’s investment strategy and the quality of its earnings, notwithstanding the challenging macroeconomic environment.
While highlighting its activities and performance during the period, NSIA noted that it 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 year-on-year growth.
“Total Comprehensive Income closed at N96.96 billion for 2022, a decline of 34.0% relative to N147. 98 billion in 2021.
According to the Managing Director & Chief Executive Officer of NSIA, Mr. Aminu Umar-Sadiq, “Against market expectations and internal forecast, NSIA closed the 2022 financial year with a respectable performance. This result underscores the robustness of our diversified portfolio, and the excellent commitment of the staff.
“Although the Group reported declining earnings year-on-year, the underlying portfolio exhibited significant resilience given the challenging macroeconomic environment characterized by rising inflation, geopolitical tension, and the impact of Covid-19 particularly in China.
“As we look to the future, NSIA is resolute in its commitment to delivering increased investments in critical sectors of the economy, driving growth across its funds, and attracting third-party capital into Nigeria’s infrastructure sector.
“In 2023, we will be resourcing our various platforms targeted at emerging sectors – renewable energy, sustainability, and innovation – which will ensure the Authority achieves its dual objectives of delivering financial returns and impactful social outcomes.”
On market overview and performance summary, the authority noted that 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) year-on-year. 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,” the authority said.
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