Nigeria’s Sovereign Wealth Fund grows by 119% to N2.258trn

Receives $45.6m fresh capital from NUPRC

By Obas Esiedesa, Abuja

Nigeria’s sovereign wealth fund, managed by the Nigeria Sovereign Investment Authority, NSIA, grew by 119 percent in 2023 to N2.258 trillion ($2.47 billion) from N1.032 trillion ($2.27bn) in 2022, the authority’s CEO, Aminu Umar-Sadiq has disclosed.

Umar-Sadiq who presented the NSIA 2023 earnings to journalists in Abuja, yesterday, explained that the Fund received $45.59 million as fresh capital from the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, in line with the provisions of the Petroleum Industry Act, PIA.

The fund which was set up in 2013 with a seed capital of $1 billion is made up of Stabilisation Fund (20%/$316 million), Future Generation Fund (30%/$1.06 billion) and Nigeria Infrastructure Fund (50%/1.102 billion).

Mr. Umar-Sadiq explained that in addition to its funds, the NSIA manages other third party funds including the Presidential Infrastructure  Development Fund (N1.03 trillion), Debt Management Office ($200 million), FGN Stabilization Fund (N57.12 billion), Nigerian Electricity Supply Industry (N200 billion) and Presidential Fertiliser Initiative with N34.1 billion net assets.

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He noted that through the Nigeria Infrastructure Fund, NSIA has invested in the construction of the Lagos-Ibadan Expressway and the Second Niger Bridge which are almost completed, and the Abuja-Kaduna-Kano Expressway which is 70 percent completed.

Giving details of NSIA financial performance in 2023, the Chief Financial Officer, Olubisi Makoju disclosed that its operating income grew by 1,064 percent in 2023 to N1.17 trillion from N101.1 billion in 2022. Also, operating profits grew by 1, 094 percent to N1.176 trillion from N98 billion in 2022. This brought total comprehensive income for the year 2023 to N1.184 trillion compared to N96.9 billion recorded in 2022.

However, when the impact of foreign exchange rate gain (N1.019 trillion) is excluded, improvement in total comprehensive income was N164.69 billion compared to N21.39 billion recorded in 2022.

She noted that at December, 2023, “a total of $1.646 billion in net government contributions have been received since 2013 and is being efficiently utilized by NSIA resulting in net assets value of $2.47 billion at year end.

“The NSIA in the last 10 years has continued to show resilience and growth in its assets performance as a demonstration of its commitment to build its asset base while creating value within the economy.

“The authority through capital preservation, diversified portfolio of assets and an enterprise approach to risk management has grown the net asset of the authority to $2.47 billion as at the end of December 2023, representing a 8.5 percent compound annual growth over the years”, she added.

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