Nigerian Sovereign Investment Authority (NSIA) has closed the 2021 financial year with a core income of N100.8 billion in 2021, down 8.0 per cent compared to N109.6 billion in 2020.
This excludes foreign exchange gains of N45.8 billion in 2021 and N51.2 billion in 2020.
The government owned Authority posted profit after tax of N153.6 billion down 1.9 per cent from 2020. (2020: N156.5 billion).
Net Asset grew 19 per cent to N919.73 billion in 2021 (2020: N772.75 billion). All the three funds closed the year positive, beating their individual benchmarks.
However, it’s total comprehensive income declined marginally in 2021 by 8.2 per cent to close the year at N147.0 billion (2020: N160.1 billion).
The global and domestic harsh operating environment seemed to have combined to make the last one year difficult for the NSIA to operate as the Fund recorded a decline of N13.08 billion in total comprehensive income within one year.
NSIA manages Nigeria’s Sovereign Wealth Fund and runs the stabilisation fund which holds 20 per cent of its assets that focuses on low risk fixed income and treasuries.
NSIA’s interest income on financial assets at amortised cost also dropped from N5.77 billion in 2020 to N5.65 billion. In a similar trend, its interest income on financial assets at face value also fell from N42.75 billion in 2020 to N33.71 billion in 2021.
It also suffered huge decline in its profit from continuing operations which dropped from N156.47 billion in 2020 to N148.53 billion.
The NSIA recorded a decline in intangible assets from N213.54m in 2020 to N125.69 million, while it posted a record negative deep in property and equipment from N5.43 billion in 2020 to N5.16 billion in 2021.
The Authority also recorded decline in its net foreign exchange gain from N51.2 billion in 2020 to N45.77 billion in 2021, while net gain on financial assets dropped from N58.09 billion to N56.91 billion.
The future generations fund which holds 40 per cent assets is channeled to investment in a riskier private equity, public equities, hedge funds and all sorts of assets classes high risk funds mostly invested internationally and locally.
Speaking with reporters during a virtual conference last yesterday, managing director of NSIA, Uche Orji said despite the challenging year, the Fund was able to finish the strong with a solid financial outcome for its contributors.
In details, stated that Presidential Fertiliser Initiative (PFI) made profit in 2021 eliminating the need for government subsidy, while making significant progress on developing the Ammonia and Di-Ammonium Phosphate production plants in Ikot-Abasi in partnership with OCP in its gas industrialization programme.
Mr Orji spoke to 2022 investment year, saying the rising global inflation inflation will be more delicate for Central Banks to manage borrowing from the crisis in Ukraine and Russia, adding that global commodity prices will continue to surge.
“I think 2022 is going to be the toughest year of investment for over the last 15 years due to globally rising inflation,” which he said is always dangerous to investment. It will be a taught year for investing across the globe. He said if the federal reserves are not able to manage it well, it could lead to stagflation that would drag in for a long time.
Orji said the NSIA is transforming itself from being funds manager to asset manager. He said they will be doing that in power sector, industrial assets that have been left to rot away and properties. The NSIA boss said what used to be an asset of the NSIA has been transferred to the Ministry of Finance incorporated.