The Nigeria Sovereign Investment Authority (NSIA) has outlined infrastructure and subsidiary development as among its strategic priorities for 2024 and beyond, following a remarkable performance in the 2023 financial year.
The NSIA stated that it will continue to maintain strong corporate governance and operate accountably, transparently, responsively, and inclusively. These qualities have enabled the Authority to evolve into a key enabler of sustainable development in Nigeria.
This strategic focus was unveiled on Thursday by Mr. Aminu Umar-Sadiq, Managing Director/CEO of the Nigeria Sovereign Investment Authority, at the NSIA 2023 Earnings Presentation in Abuja.
Umar-Sadiq mentioned that under infrastructure and subsidiary development, the NSIA will adopt a people strategy, enhance its capital recycling and structure optimization, and improve operating cost efficiency to achieve its set goals.
He reiterated that the NSIA will continue to ensure operational excellence and efficiency in all its businesses, including project origination in the Nigerian Infrastructure Fund (NIF) and successful operationalization of subsidiaries.
According to him, the NSIA will continue to strengthen stakeholder relationships through institutional strengthening and effective stakeholder and investor engagement.
Under its innovation and strategic growth initiative, the Managing Director/CEO of NSIA stressed that the organization would go beyond business-as-usual to actualize its goals, emphasizing fiscal responsibility, attracting foreign investment, becoming an ESG partner of choice, establishing long-term saving mechanisms, and executing projects effectively.
Umar-Sadiq stated, “The strategic priorities are designed to bolster NSIA’s foundational operations and workforce, thereby enhancing efficiency and overall effectiveness, while simultaneously emphasizing the cultivation of partnerships, attraction of investments, and initiation of outward-facing projects that align with NSIA’s strategic ambitions.”
He highlighted that “NSIA has demonstrated resilience and growth in its asset performance over the last 10 years, as evidenced by its commitment to building its asset base while creating value within the economy.”
He pointed out that “The Authority, through capital preservation, a diversified portfolio of assets, and an enterprise approach to risk management, has grown the Net asset of the Authority to $2.47 billion as of the end of December 2023, representing an 8.5% compound annual growth over the years.”
“NSIA received its first royalty payment from the Nigeria Upstream Petroleum Regulatory Agency (NUPRC) in 2023 (by virtue of the Petroleum Industry Act), in the sum of $45.59 million.”
NSIA’s net assets grew by 119 percent to ₦2.22 trillion in December 2023 from ₦1.02 trillion recorded at the end of December 2022.
It also recorded 11 consecutive years of continuous positive earnings, with a cumulative annual growth rate of 117.3 percent.
The NSIA highlighted that its total operating income increased from ₦101.1 billion in the previous year to ₦1.18 trillion, inclusive of foreign exchange gains during the period under review.
It attributed this significant rise to the positive performance of the equities and fixed-income portfolios, as well as the positive performance of NSIA’s infrastructure investments.
ALSO READ: CAC leadership tussle: Court orders accelerated hearing
Total comprehensive income closed at ₦1.18 trillion for 2023, indicating a growth of 1,122 percent relative to ₦96.96 billion in 2022.
NSIA’s core total comprehensive income, excluding foreign exchange gains, rose from ₦21.39 billion in the previous year to ₦164.69 billion, marking a 670 percent increase attributable to the Authority’s robust strategic asset allocation and adherence to best-in-class enterprise risk management processes.
Aminu Umar-Sadiq stated that the NSIA is poised to continually create long-term value for its stakeholders by delivering excellent risk-adjusted financial results, developing a healthy and well-diversified portfolio of assets and infrastructure projects, and enhancing desired social outcomes in Nigeria.