The Nigeria Sovereign Investment Authority (NSIA) recorded an income of N160.06 billion last year, signalling 343 per cent more compared to the N36.15 billion income it recorded the preceding year.
Announcing its 2020 audited financial reports in a digital platform, Managing Director of NSIA Mr. Uche Orji said despite the challenges of Covid-19, NSIA had a solid year.
He attributed the strong performance to NSIA’s investments in global capital markets, the enhanced contribution from subsidiaries and affiliates and exchange gain from foreign currency positions.
The NSIA earnings came from a devaluation gain of N51billion, and centre income of N109billion when compared with N33.07 billion in 2019.
However, Orji lamented: “Covid-19 adversely affected logistics about infrastructure projects, notably the toll road projects along with the presidential fertiliser initiative”
Despite the pandemic, the Authority achieved 33 per cent growth in Net Assets to N772.75 billion compared to the previous year’s performance of N579.54 billion.
Orji said the NSIA”received an additional contribution of $250 million, and provided first stabilisation support to the Federal Government of $150 million withdrawn from Stabilisation Fund this past year.
In the Identical year, the NSIA received $311 million from capital recovered from the late General Abacha in the United States Department of Justice and Island of Jersey for deployment towards the Presidential Infrastructure Development Fund (PIDF) jobs of Abuja-Kaduna-Kano Highway, Lagos Ibadan Expressway and Second Niger Bridge.
In response to COVID-19, Orji stated: “NSIA partnered the international Citizen, a not-for-profit group, to make the Nigeria Solidarity Support Fund. Separately NSIA acquired and distributed oxygen concentrators to the 21-teaching hospital as part of corporate social responsibility; along with staffing assistance to the Presidential taskforce on COVID-19.”
In 2020, the NSIA”spent additional capital into NG Clearing, the first derivative clearing home in Nigeria to keep NSIA’s shareholding in 16.5 per cent following the company’s rights issue of 2020″ Orji said.
The NSIA admitted InfraCo Africa, a Private Infrastructure Development Group (PIDG) firm based in the UK as 33 per cent shareholder in InfraCredit, reducing NSIA’s stake from 50 per cent in 2019 to 33 per cent in 2021. NSIA, Orji said, is in discussions with additional investors to InfraCredit.
The following asset classes were standout performers in 2020. “In $ returns, Venture Capital investments were up 29 per cent in dollar terms, Hedge Funds grew up 11 per cent, Emerging Long Only Equity Managers climbed by 22 per cent, Developed Long Just Equity Managers also climbed by 19 per cent and Personal Equity was up 13 per cent for the year.
Orji stated that”some managers in the long-only strength classes were up more than 50 per cent at the year as most took advantage of the supportive environment provided by central banks”.
The only real asset classes Orji said: “was additional diversifiers which among other investments like health exemptions, commodities, and real estate, includes commitments to Aircraft leasing funds that had an understandably poor year because of the effect of COVID-19”.
He said: “NSIA expects these funds will recover eventually, having had a good performance in the previous years. Stabilisation Fund Liquidated portion of the Stabilization Fund assets in 2020 to meet the $150million redemption that augmented the July 2020 FAAC to all three tiers of government”.
Another indicator of a glowing future is the”Stabilisation Fund (SF) performed well given the economic climate and ultra-low interest rates set by central bankers”.