NSIA posts positive numbers, grows assets valuation 5% to N650bn
AT THE END OF THE 2019 FI NANCIAL year, total asset valuation of Nigerian Sovereign Investment Authority (NSIA) appreciated by N32.15 billion or 5% to N649 billion from N617.70 billion in 2018.
The company announced this at its 2019 Financial Year Briefing held virtually online where the management of the company further disclosed that its interest income, a key component of total income, earned in 2019 rose to N27.02 billion, representing a 13 per cent increase over the N23.82 billion recorded in the previous year.
Speaking at the online engagement on Friday, Uche Orji, managing director and chief executive officer of NSIA said, while its total comprehensive income was N36.15 billion, an 18 per cent reduction relative to the 2018 income of N44.37 billion, real performance on core activities of the Authority was better than 2018 performance by 35 per cent when currency revaluation income earned in 2018 is excluded.
Orji explained that markets experienced a strong bullish run in 2019 due to the accommodative interest rate environment, sheathing of swords by US and China in the trade war and the signing of the Brexit agreement.
On this account, the markets experienced fewer bouts of volatility, and consequently, the Authority’s fund performed favourably by generating aggregate returns of 6.43 per cent.
He said, “2019 was a mostly favourable year for the Authority in terms of performance. We deployed our diversified asset strategy and secured positive returns from the international markets across all asset class.
“All asset classes, including equities, hedge funds and private equity outperformed. In the period, we also judiciously deployed capital toward key infrastructure project and recorded significant progress.
“Considering the volatile global and generally challenging local investment environment, this performance reflects the strength and capability of portfolio and risk management within the institution,” Orji said.
He added that performance underscores NSIA’s strategy to generate fixed income returns from securities that generate predictable interest, and steady returns including eurobonds, treasury bills and other secured deposits.
Speaking further on the financials, Stella OjekweOnyejeli, executive director and chief operation officer, said total comprehensive income for 2019 included foreign exchange gains of N1.26 billion against N18.05 billion in foreign exchange gains for 2018.
The foreign exchange gains arose due to changes in the currency translation rate from N305/US$ to N325/US$ as approved by government, she said.
“The Authority continues to manage 3rd party funds on behalf of some government institutions. We currently manage funds for the Debt Management Office (DMO) and the Ministry of Finance.
“For DMO, the current value of AuM is US$124.03 million. For 2018, this fund stood at US$122.60 million in AuM.
“For the Nigeria Stab Fund, managed on behalf of the Ministry of Finance, the Fund Balance was N33.365 billion. As of YE 2018, this balance was N20.814 billion.
“As of year-end 2019, NSIA’s core capital remained at US$1.5 billion. However, Nation Economic Council voted for an additional capital contribution of US$250 million in 2019 which was received on the 8th of April 2020,” Ojekwe-Onyejeli.