By Adedapo Adesanya
The Nigeria Sovereign Investment Authority (NSIA) reported a sharp drop in profit for 2022 as the country’s wealth fund profits declined 33 per cent to N102.4 billion ($222.2 million).
This happened as total income dropped by 28 per cent to N111.4 billion compared with a year earlier.
In the report released over the weekend, NSIA said this was caused by macroeconomic conditions in developed and emerging markets as well as in the local economy.
Net assets grew by 10.5 per cent to N1.00trillion while earnings from interest income, infrastructure business revenue, and fiduciary activities’ management fees increased 34.5 per cent to N15.7 billion year-on-year.
The wealth fund body said the fiscal year was marked by unprecedented shocks, such as the COVID-19 lockdown in China, the Russia- Ukraine conflict, food and energy crises, supply-chain disruptions, soaring inflation, and monetary policy tightening, which precipitously impacted the global financial markets.
NSIA said it ended the 2022 financial year “with a respectable performance” as measured against market expectations and its own internal forecast.
Speaking on the performance, Mr Aminu Umar-Sadiq, NSIA’s Chief Executive Officer, said, “Against market expectations and internal forecast, NSIA closed the 2022 financial year with a respectable performance. This result underscores the robustness of our diversified portfolio and the excellent commitment of the staff.
“Although the Group reported declining earnings year-on-year, the underlying portfolio exhibited significant resilience given the challenging macroeconomic environment characterized by rising inflation, geopolitical tension, and the impact of COVID-19, particularly in China.”
He added that, “NSIA is resolute in its commitment to delivering increased investments in critical sectors of the economy, driving growth across its funds, and attracting third-party capital into Nigeria’s infrastructure sector.”
“In 2023, we will be resourcing our various platforms targeted at emerging sectors – renewable energy, sustainability, and innovation – which will ensure the Authority achieves its dual objectives of delivering financial returns and impactful social outcomes,” he noted.
Modupe Gbadeyanka