Nigeria Sovereign Investment Authority’s Revenue Increases by Over 300% To N160 Billion In 2020 – MD

Nigeria Sovereign Investment Authority

In a season characterized by a decline in the revenue of most government agencies, largely due to an economic fall-out induced by the COVID-19 pandemic, the Nigeria Sovereign Investment Authority has reported a comprehensive income of N160.6 billion for the year ended 2020, indicating an increase of 343% when compared to the N36.15 billion reported in the corresponding period in 2019.

The disclosure was made by the Managing Director of the agency, Mr. Uche Orji, during a virtual media conference presentation of NSIA 2020 Audited Financial Statements and Performance Review, held in Abuja today.

Mr Orji attributed the growth to improved contribution from subsidiaries and affiliates, exchange gain from foreign currency positions and strong performance from its investments in international capital markets. He also added that the agency recorded a 33% surge in Net Assets, from N579.54 billion as at FY 2019, to N772.75 billion in FY 2020.

Commenting on the recent development, Mr Orji said: ‘The 2020 fiscal year was characterized by high volatility and global market uncertainty on account of COVID-19 in the first half. However, the authority’s strategic investments generated respectable returns in spite of the impact of COVID-19. Notably, NSIA has invested in various private equity and venture capital investment funds to tap into the high-growth sectors. NSIA expects that the outlook for 2021 would be positive; however we expect bouts of volatility as global markets adjust and recover from the impact of the pandemic.’’

Orji also revealed that NSIA received additional contribution of $250 million and provided first stabilization support of $150 million from the Stabilization Fund to the Federal Government. This is in addition to the sum of $311 million it received from the US Department of Justice and Island of Jersey as funds recovered from late General Sani Abacha.

Commenting on some of the intervention programs and projects that the organization was involved in, Mr Orji itemized them as;

  • Strategic collaboration with BBVGH for cancer treatments.
  • Training personnel and subsidizing cancer medicine for NSIA-LUTH cancer patients.
  • Developed and opened NSIA-Kano Diagnostic Centre and the NSIA-Umuahia Diagnostic Centre built with the sum of $5.5 million each.
  • Currently building 10 megawatts solar power plant in Kano worth $15 million and expected to be completed by the end of 2022.
  • Produced 12 million 50 kilogram bags of NPK 20:10:10 equivalent, in collaboration with the Presidential Fertiliser Initiative (PFI).
  • Completed the construction of 3000 hectares Panda-Agric Farm in Nasarawa, in conjuction with UFF.

Orji noted that the organization was looking forward to completing the concession, capital raise and operationalization of the Lagos-Ibadan Expressway, Second Niger Bridge and Abuja-Kaduna-Kano Highway. Going forward, he said: ‘’ In the Future Generations Fund, we expect to allocate more capital to venture capital, global equity markets and increasing exposure to European equities where we had been under exposed in 2020.“NSIA believes that broad opening of the markets will provide a comprehensive lift to equities. Although NSIA believes the market is unlikely to repeat some of the performance of 2020.It is more likely that a broader market recovery will occur with economies opening unlike the case in 2020 in which technology stocks drove market performance’’