The Nigeria Sovereign Investment Authority (NSIA) has announced a landmark financial achievement, reporting a staggering ₦3.74 trillion in cumulative retained earnings as of the end of 2024. This milestone marks 12 consecutive years of profitability, showcasing the fund’s robust investment strategies and resilience amidst a challenging global economic landscape.
The audited financial results, released Monday, reveal a significant surge in operating profits, excluding shares from associates and joint ventures, which climbed from ₦1.17 trillion in 2023 to ₦1.86 trillion in 2024. This growth, as the NSIA reported, is attributed to “the strong performance of NSIA’s diversified investment portfolio, infrastructure assets, gains from foreign exchange movements and derivative valuations.”
Total Comprehensive Income (TCI), including shares from associates and joint ventures, reached ₦1.89 trillion, a 59% increase from the previous year. Notably, core TCI, excluding foreign exchange and derivative valuation gains, soared by 148% to ₦407.9 billion.
“The Authority’s outstanding financial performance in 2024 reflects the strength of our strategic vision, disciplined execution and unwavering commitment to sustainable socio-economic advancement,” stated Aminu Umar-Sadiq, Managing Director and Chief Executive Officer of NSIA. “By leveraging innovation, strategic partnerships and sound risk management, we have not only delivered strong returns but also created value for our stakeholders.”
Net assets of the NSIA nearly doubled, increasing by 96% to ₦4.35 trillion, compared to ₦2.22 trillion in December 2023. This dramatic growth underscores the fund’s effective management and investment strategies.
Key Factors Driving NSIA’s Success:
- Diversified Investment Portfolio: Strategic investments across various sectors, including infrastructure, financial assets, and private equity.
- Robust Risk Management: Effective strategies to mitigate risks in volatile global markets.
- Strategic Partnerships: Collaborations that enhance investment opportunities and drive growth.
- Strong Leadership: The newly appointed board, led by Chairman Olusegun Ogunsanya, has provided crucial strategic direction.
“As we move forward, we remain focused on driving economic transformation, expanding opportunities, scaling transformative impact and ensuring long-term prosperity for current and future generations of Nigerians,” Umar-Sadiq added.
The NSIA’s commitment to transparency and adherence to its Establishment Act reinforces its trustworthiness and credibility. The organization prioritizes clear communication with all stakeholders, ensuring accountability and fostering strong relationships.
Looking ahead, the NSIA aims to continue its mandate of managing Nigeria’s sovereign wealth, delivering strong financial results, and developing crucial infrastructure projects. The focus remains on creating long-term value and driving sustainable socio-economic growth for Nigeria.
This sustained profitability of the NSIA holds significant implications for the Nigerian economy. The ability to generate and maintain such strong returns means increased funding available for critical infrastructure projects, and a more stable financial base for the country as a whole. As someone who has watched the development of the Nigerian economy over the past years, I can say that this consistent performance is a very positive sign.
The NSIA’s achievements demonstrate the potential of strategic investment and sound management in driving economic growth and creating lasting value.
