The Nigerian Sovereign Investment Authority which oversees the country’s sovereign wealth fund released its audited financial results for the 2022 fiscal year on Thursday.
According to The Sun, the difficult macroeconomic context, the financial performance highlights the NSIA’s investment strategy’s tenacity and the quality of its earnings.
Highlights of NSIA’s performance and activities over time revealed that, despite market volatility and challenges, the company recorded its 10th consecutive year of positive earnings.
Overall Assets increased by 10.5% to N1.02 trillion in 2022 from N919.73 billion in 2021.
The company’s non-volatile income, which includes interest income, infrastructure business revenue, and management fees from fiduciary operations, climbed by 34.5% (N15.7 billion) from the previous year.
Overall Comprehensive Income of N96 billion in 2022 is a decrease of 34% from 147 billion in 2021, mostly as a result of significant macroeconomic headwinds. Yet, the agency was able to perform admirably by outperforming the majority of global investment benchmarks and indices.
According to the managing director and chief executive officer, Mr. Aminu Umar-Sadiq, the performance was recorded despite the difficulties in the operational environment.
In contrast to external and internal expectations, NSIA finished the 2022 fiscal year with satisfactory performance, he stated. This outcome highlights the strength of our broad portfolio and outstanding team dedication.
He continued, “As we move to the future, NSIA is determined in its mission to deliver additional investments in crucial economic areas, to promote growth across its funds, and to draw outside money into Nigeria’s infrastructure sector. Renewable energy, sustainability, innovation, and healthcare are some of the developing industries we will be resourcing in 2023 to help the Authority meet its dual goals of generating financial returns and positive social effects.”
Unprecedented shocks including the COVID-19 lockdown in China, the Russia-Ukraine conflict, the food and energy crises, supply-chain disruptions, skyrocketing inflation, and tighter monetary policy highlighted the 2022 fiscal year, which sharply affected the financial markets.
The Nigerian economy, like other emerging and frontier markets, had numerous difficulties in 2018. The likelihood of growth dwindled as the year came to a close due to rising inflation, which was principally caused by rising food prices, decreased oil output, and a weakening currency.
The NSIA Group reported N96.96 billion in earnings at the end of 2022, 34% less than the N146.98 billion realized in 2021. This loss was principally caused by the performance of our portfolios for future generations and stabilization, which are invested in securities from developed and emerging financial markets.
The findings show that NSIA’s well-diversified portfolio continues to give it the strength to weather market difficulties.