The Nigeria Sovereign Investment Authority (NSIA) has announced remarkable financial results for the 2024 fiscal year, demonstrating significant growth and resilience despite global economic headwinds. The Authority’s net assets surged by an impressive 96%, reaching N4.35 trillion by December 2024, compared to N2.22 trillion in the previous year. This substantial increase underscores the effectiveness of NSIA’s investment strategy, characterized by a diversified portfolio and prudent risk management practices. The growth trajectory not only signifies financial strength but also highlights the NSIA’s commitment to long-term value creation for Nigerian stakeholders. The achievement further solidifies the NSIA’s position as a key player in driving Nigeria’s economic development and ensuring sustainable prosperity for future generations.
The NSIA’s financial success in 2024 was driven by several contributing factors, showcasing the Authority’s robust and adaptable investment approach. A diversified investment portfolio, spanning various asset classes, played a crucial role in mitigating risks and maximizing returns. Infrastructure assets, a core component of NSIA’s investment strategy, generated significant value, contributing to the overall growth in net assets. Favorable foreign exchange movements and derivative valuations further bolstered the Authority’s financial performance. These factors, combined with the NSIA’s disciplined execution and strategic vision, enabled the Authority to navigate global economic uncertainties and deliver exceptional results.
The NSIA’s profitability in 2024 marked its 12th consecutive year of sustained earnings, culminating in cumulative retained earnings of N3.74 trillion. This consistent track record of profitability underscores the Authority’s commitment to long-term financial stability and sustainable growth. Total operating profits, excluding the share of profits from associates and joint ventures, reached N1.86 trillion in 2024, a significant increase from N1.17 trillion in 2023. This growth reflects the strength of NSIA’s investment portfolio and its strategic financial positioning. The remarkable growth in operating profits further solidifies the NSIA’s role as a vital contributor to Nigeria’s economic progress.
The Authority’s Total Comprehensive Income (TCI), which includes the share of profits from associates and joint ventures, reached N1.89 trillion in 2024, representing a 59% increase from the previous year. This substantial growth in TCI further strengthens the Authority’s financial standing and underscores the effectiveness of its investment strategy. Furthermore, the Core TCI, excluding foreign exchange and derivative valuation gains, experienced a remarkable surge of 148%, reaching N407.9 billion in 2024 compared to N164.7 billion in 2023. This impressive growth in Core TCI highlights the strength of NSIA’s underlying investments and its ability to generate strong returns.
Strong returns on financial assets, particularly those measured at fair value through profit and loss, played a pivotal role in NSIA’s exceptional performance. These assets, including collateralised securities, private equity, hedge funds, and exchange-traded funds, contributed significantly to the overall growth. The diversified nature of these investments underscores the NSIA’s commitment to prudent risk management and its ability to capitalize on opportunities across various market segments. This strategic investment approach has enabled the NSIA to achieve consistent growth and deliver substantial value to stakeholders.
Aminu Umar-Sadiq, Managing Director and Chief Executive Officer of NSIA, attributed the Authority’s success to a combination of strategic vision, disciplined execution, and a steadfast commitment to sustainable socio-economic advancement. He emphasized the importance of innovation, strategic partnerships, and sound risk management in achieving strong returns and creating value for stakeholders. Looking ahead, Umar-Sadiq reaffirmed the NSIA’s focus on driving economic transformation, expanding opportunities, scaling transformative impact, and ensuring long-term prosperity for current and future generations of Nigerians. The appointment of a new Board, chaired by Olusegun Ogunsanya, further strengthens the Authority’s governance structure and strategic direction, reinforcing its commitment to transparency and stakeholder engagement. The NSIA remains dedicated to its core mandate of managing Nigeria’s sovereign wealth prudently, investing in infrastructure development, and providing stabilisation support during economic challenges, ultimately contributing to a stronger and more prosperous future for Nigeria.
