The Nigerian Sovereign Investment Authority (NSIA) grew its net assets by 19.02 per cent to N919.73 billion and recorded an N153.56 billion profit in the 2021 financial year, showing resilience amidst the rampaging COVID-19 pandemic and rising inflation.
The latest profit posted by the NSIA makes it the 9th consecutive year that it would show impressive performance, this time, in the face of global weak economic outlook and inflationary pressures.
Uche Orji, the pioneer Managing Director and Chief Executive Officer of the Nigerian Sovereign Investment Authority (NSIA), while presenting the Authority’s result sheet via Webinar, on Monday, pointed out that despite a tough and volatile market, the NSIA’s investment strategy proved resilient, leading to a favourable outcome as exemplified by the 2021 financial statement.
The NSIA was set up in 2012 to manage Nigeria’s Sovereign Wealth Fund and has harvested a core income of N100.8 billion in 2021 compared to N109.6 billion in 2020.
According to the report, this excludes foreign exchange gains of N45.8 billion in 2021 and N51.2 billion in 2020. It, however, recorded a marginal decline of 8.17 per cent in total comprehensive income from N160.06 billion in 2020 to N146.98 billion in 2021.
In the Agriculture sector, the Authority said under the Presidential Fertiliser Initiative (PFI), it produced over 12 million 50kg bags of NPK 20:10:10 equivalent in 2020, bringing total production since inception to over 30 million 50kg bags equivalent, and the number of participating blending plants increased to 44 from less than seven at inception in 2017.
In the sphere of technology, the NSIA in line with the fund’s objective has successfully invested in a hyper-scale cloud data company – Kasi Cloud Limited. It invested about $12 million in early-stage, as venture capital fund managers focused on the African technology space.
Under its gas industrialisation initiative, the NSIA made significant progress in developing the Ammonia and Di-Ammonium Phosphate production plants in partnership with OCP and selected Ikot-Abasi in Akwa-Ibom as the project site after an extensive review of several other locations.
The three road projects being implemented by the NSIA under the Presidential Infrastructure Development Fund (PIDF) namely the Lagos-Ibadan Expressway, Second Niger Bridge, and Abuja-Kaduna-Kano Highway have reached 66 per cent, 53 per cent, and 66 per cent completion, respectively.
The target date of completion for the first two projects is 2022 with 2025 set as the target date for the original scope on Abuja-Kaduna-Kano Highway.
In healthcare, the Authority also commenced operations at both the NSIA-Kano Diagnostic Centre and NSIA-Umuahia Diagnostic Centre in March and August of 2020 respectively.
This, the NSIA, said has helped to create access to quality healthcare for at least one million patients per annum.
Mr Orji added that the Authority has also expanded its footprint of diagnostic and single-speciality centres and delivered $0.6 million worth of Covid-19 relief equipment to Federal tertiary medical institutions across all six geo-political zones in response to efforts to combat and prevent a resurgence of Covid-19 virus.
The Future Generations Fund (FGF) returned 11.98 per cent for the year, with private equity, developed equity, and hedge funds being the best performers in 2021.
The hedge funds composite returned 12.75 per cent for the year, and returns ranged from -6.51 per cent (Palestra Capital) to 26.18 per cent (Naya fund).
According to the NSIA Managing Director and Chief Executive Officer, the Naya fund has a 21.3 per cent allocation within the hedge fund composite as of the end of December and was the top contributor to performance. Palestra was the only fund to have a negative year and accounts for an allocation of 5.92 per cent.
In Equity Funds investment, the MSCI developed markets index far outperformed the MSCI emerging markets index in 2021, returning 21.82 per cent and -2.54 per cent respectively. The Emerging Markets Composite outperformed its benchmark, while the Developed Markets Composite underperformed its benchmarks.
Developed Market Equity: The Developed Equity Composite returned 17.46 per cent for the year, underperforming the MSCI world index by 4.36 per cent. The “Other ETFs” portfolio ended the year 13.93 per cent lower in USD terms and the US had the top passive ETF portfolio, returning 28.20 per cent. The top-performing fund was the Cevian Capital Fund, returning 23.84 per cent for the year.
Private Equity: Private equity returned 32.14 per cent for the year. This composite return includes a diverse range of returns from the different private equity investments.
The Stabilisation Fund (SF) which is invested in the United States sovereign debt instruments and investment grade corporate credit at the end of December 2021, 21 per cent of the fund was invested in a portfolio of US treasury bonds tracking the Bloomberg Barclays US Treasury bond 1–3-year index.
The fund returned 1.60 per cent for the year, and the Nigeria treasury bills hedged to the US dollar were the best performing component, returning 3.69 per cent for the year, Mr Orji further stated.
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