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  • NSIA recorded 670% income growth last year

    NSIA recorded 670% income growth last year

    The Nigeria Sovereign Investment Authority (NSIA) has recorded a Core Total Comprehensive Income of N1.6 trillion in 2023 from N21.398 billion in 2022, that is 670 percent growth.

    The Managing Director of the NSIA, Aminu Sadiq, released its 2023 financial results in Abuja yesterday. According to the report, the NSIA had a diverse range of income sources for 2023. These sources include interest income from Eurobonds, Fixed Deposits (FDs), Commercial Papers (CPs), and bank balances. Additionally, interest income is generated from Federal Government of Nigeria (FGN) bonds and bills, bills, US Treasury securities, among others. The NSIA also earns income from investment dividends, distribution income, net gains on securities valuation, and other Fair Value Through Profit or Loss (FVTPL) assets. Net foreign exchange gains contribute to the income as well.

    The headline figures revealed an increase in net assets, jumping from N156 billion since 2013 to N2.2 trillion in 2023.

    According to the NSIA boss, “NSIA in the last 10 years has continued to show resilience and growth in its asset performance as a demonstration of its commitment to build its asset base while creating value within the economy.

    “The Authority through capital preservation, diversified portfolio of assets and an enterprise approach to risk management has grown the Net asset of the Authority to $2.47 billion as at end of Dec-23, representing a 8.5 percent compound annual growth over the years.

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    “NSIA received its first royalty by price payment from Nigeria Upstream Petroleum Regulatory Agency (NUPRC), in 2023 (by virtue of the Petroleum Industry Act) in the sum of $45.59 million.

    In 2023, the NSIA demonstrated a strong commitment to supporting Nigeria’s infrastructure development. 

    Sadiq stated that over $500 million was invested directly in domestic infrastructure projects. This targeted investment he said will play a crucial role in bolstering the nation’s infrastructure landscape. 

    The NSIA’s impact also extends beyond its direct investments. The report details how the Authority has catalyzed over $1 billion in third-party investments. By creating a more attractive investment environment, the NSIA is effectively leveraging its resources to attract significant additional capital for critical projects.

    He assured of the NSIA’s dedication to fostering domestic private equity.

    The report revealed that the NSIA made investments in over 50 percent of locally owned and operated private equity funds. This targeted support strengthens the local financial ecosystem and empowers homegrown businesses to contribute to national development. 

    The NSIA acknowledged that its success is underpinned by a commitment to transparency. The report highlights “a certain deliberateness around transparency” as a key factor in achieving its impressive results. This focus on openness fosters trust with stakeholders and paves the way for continued growth.

    The report acknowledges the complex global environment in 2023, including factors such as tightening global monetary policy, China’s economic slowdown, the 2023 United States Banking crisis, Nigeria’s political transition, and persistent high inflation.  The NSIA’s ability to navigate these challenges and deliver such positive results underscores the effectiveness of its investment strategies.

    Following from the 2023 financial performance, the Nigeria Sovereign Investment Authority (NSIA) has unveiled its strategic priorities for 2024, outlining a roadmap for continued growth and impact. 

    The NSIA recognises the importance of bridging the gap between project planning and execution.  Developing a “best-in-class” capability for executing infrastructure projects is a key focus area for 2024. 

    Sadiq highlighted the Abuja light rail project as an example of successful project execution, where the NSIA not only conceptualized the initiative but also attracted capital from desirable global Development Finance Institutions (DFIs). Replicating this success in attracting high-caliber partners is a key objective for the coming year.

  • JUST IN: NSIA records 657% net assets growth

    JUST IN: NSIA records 657% net assets growth

    …over $500 million invested domestically

    The Nigeria Sovereign Investment Authority (NSIA) has released its 2023 financial results.

    The headline figures revealed an increase in net assets, jumping from N156 billion in 2003 to N2.22 trillion in 2023.

    In 2023, the NSIA demonstrated a strong commitment to supporting Nigeria’s infrastructure development. 

    Managing Director of the NSIA Aminu Umar Sadiq stated that over $500 million was invested directly in domestic infrastructure projects.

    This targeted investment he said will play a crucial role in bolstering the nation’s infrastructure landscape.

    Read Also: NSIA reports N1.18tr income in 2023 

    The NSIA’s impact also extends beyond its direct investments.

    The report details how the Authority has catalyzed over $1 billion in third-party investments. By creating a more attractive investment environment, the NSIA is effectively leveraging its resources to attract significant additional capital for critical projects.

    Aminu Umar Sadiq assured of the NSIA’s dedication to fostering domestic private equity.

    The report revealed that the NSIA made investments in over 50 percent of locally owned and operated private equity funds.

    This targeted support strengthens the local financial ecosystem and empowers homegrown businesses to contribute to national development. 

    The NSIA acknowledged that its success is underpinned by a commitment to transparency. The report highlights “a certain deliberateness around transparency” as a key factor in achieving its impressive results. This focus on openness fosters trust with stakeholders and paves the way for continued growth.

    The report acknowledges the complex global environment in 2023, including factors such as tightening global monetary policy, China’s economic slowdown, the 2023 United States Banking crisis, Nigeria’s political transition, and persistently high inflation.

    The NSIA’s ability to navigate these challenges and deliver such positive results underscores the effectiveness of its investment strategies.

    Details shortly…

  • NSIA records ₦1.18tr Income in 2023

    NSIA records ₦1.18tr Income in 2023

    The Nigeria Sovereign Investment Authority (NSIA) has released its 2023 financial results.

    The Authority’s total operating income surged to N1.18 trillion, reflecting a significant increase of 1,079 percent compared to the previous year. 

    This performance is attributed to a combination of factors, including: solid returns from the equities and fixed-income portfolios, coupled with successful infrastructure investments.

    In addition, the NSIA’s emphasis on a well-diversified portfolio and risk management practices contributed significantly to the positive results.

    While not core to the investment strategy, foreign exchange fluctuations played a role in boosting income, with the NSIA generating N1.02 trillion from foreign exchange gains.

    The NSIA has achieved 11 consecutive years of positive earnings, with a cumulative annual growth rate of 117.3 percent . 

    Read Also: NSIA, NSP sign agreement for Shiroro Solar Generating Company

    Net assets have also witnessed a significant rise, reaching N2.22 trillion by December 2023, that is 119 percent increase from the previous year N1.02 trillion.

    The report acknowledged the challenging global and local economic landscapes in 2023. Factors such as the redesign of the Naira, fuel subsidy removal, currency devaluation, and high inflation presented significant hurdles. 

    However, NSIA’s strategic approach and robust risk management framework enabled the Authority to not only weather these challenges but also deliver exceptional results.

    Commenting on the results, NSIA’s Managing Director and Chief Executive Officer, Mr. Aminu Umar-Sadiq, highlighted the organisations unwavering commitment to its mandate. 

    He emphasised NSIA’s focus on: “creating positive socio-economic outcomes through critical infrastructure investments; expanding impact across vital sectors through strategic collaborations; and integrating environmental responsibility into its investment decisions”.

    The report acknowledged the dynamic nature of the 2024 economic landscape with factors like geopolitical tensions, potential supply chain disruptions, and ongoing deglobalization posing potential challenges. 

    NSIA emphasised the importance of strategic planning, effective risk management, and adaptability in navigating these complexities.

  • Cancer treatment: Tinubu approves NSIA’s involvement in upgrade of six oncology centres

    Cancer treatment: Tinubu approves NSIA’s involvement in upgrade of six oncology centres

    President Bola Tinubu has approved the involvement of the National Sovereign Investment Authority (NSIA) in the upgrade of six oncology centres for the treatment of cancer in six federal university teaching hospitals across the geo-political zones, the Coordinating Minister of Health and Social Welfare Prof Ali Pate has said.

    He emphasized that NSIA’s involvement in the oncology initiative was imperative due to the project’s stagnation four years ago, which could no longer be tolerated given the current volatile local and global inflationary trends.

    The project will recommence utilizing the remaining N17.9b from the initial appropriation, along with the N30b allocated for it in the 2024 budget for the six centers, totaling N37.9b.

    In addition to bridging the funding gap, the NSIA collaboration would also ensure the provision of infrastructure and training of personnel, among other variables to the project.

    Pate spoke yesterday in Abuja during the signing of the Memoranda of Understanding (MoU) between the ministry, the NSIA and the six federal university teaching hospitals, where he also confirmed the NSIA board’s approval of the project.

    Present at the event was the Ministry’s Permanent Secretary Daju Kachlllom; NSIA Managing Director, Aminu Sadiq; the Chief Medical Directors (CMDs) of Federal Teaching Hospital, Katsina, Suleiman Mohammed; Ahmadu Bello University Teaching Hospital, Zaria, Prof. Hamidu Umdagas; Jos University Teaching Hospital, Pokop Bupwatda; the University of Nigeria Teaching Hospital, Enugu, Prof. Obinna Onodugo; University of Benin Teaching Hospital, Benin, Prof. Darlington Obaseki; and Lagos University Teaching Hospital, Lagos, Prof. Wasiu Adeyemo as well as the representatives of the Economic and Financial Crimes Commission (EFCC) and Civil Society Organizations (CSOs).

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    Pate who noted that upon reviewing the project upon assuming office and considering the current economic realities, said the government had no choice but to eliminate all obstacles hindering the project, including ‘vested interests’.

    According to him, having identified the activities of the middleman in the procurement of the equipment as one of the factors that have been inhibiting the implementation of the project,  the involvement of NSIA has eliminated the middlemen.

    As such, the country would be saving approximately N10b as NSIA’s direct involvement with equipment manufacturers would guarantee the country a 30% discount on procured equipment, he added.

    He said: “This is a milestone that brings to the end of a tragic story for thousands of Nigerians who have all kinds of diseases who struggled to get care every day, especially for those who had cancers, from when they are diagnosed, it’s a tragedy by itself.

    “And for us, for, to see in three, four years where the money would be appropriated for cancer equipment but for one reason or the other we have not been able to move forward, that is another tragedy.

    “But that tragedy is being brought to an end now and President Bola Tinubu must be commended for changing the narrative by approving the implementation of the project’s 2024 appropriation funding gap in collaboration with NSIA, for six newly upgraded cancer infrastructure equipment.

     “I understand that the delays this project encountered in the last three to four years are largely attributable to vested interests but for us, it is Nigeria and people’s interest first, particularly when it comes to cancer.”

  • NSIA, NSP sign agreement for Shiroro Solar Generating Company

    NSIA, NSP sign agreement for Shiroro Solar Generating Company

    Vice President Kashim Shettima has said Nigeria’s energy transition journey, as well as its resolve to embrace clean and renewable energy solutions, remains on track under the administration of President Bola Tinubu.

    The vice president stated this on Tuesday at the Presidential Villa during the signing of the joint venture agreement for the establishment of the Shiroro Generating Company, Nigeria’s pioneer 20MW On-grid Solar-Hydro Hybrid project, between the Nigeria Sovereign Investment Authority (NSIA) and North-South Power (NSP) Company Ltd.

    According to a statement issued by Senior Special Assistant on Media and Communications, Office of the Vice President, Stanley Nkwocha, Vice President Shettima noted that the event “marks a significant milestone and will boost the country’s energy transition journey” and an affirmation of President Bola Ahmed Tinubu administration’s resolve to embrace clean and renewable energy solutions.

    “The federal government of Nigeria, under the able leadership of President Bola Ahmed Tinubu, remains steadfast in supporting initiatives that drive economic growth, enhance energy security and protect our environment,” the Vice President noted.

    The Shiroro Generating Company is a joint venture project between the Nigeria Sovereign Investment Authority (NSIA) and North-South Power, investing in a pioneer 20MW solar-hydro hybrid project in Shiroro, Niger State.

    The 20MW Pilot Project (Phase 1a) is embedded within a larger 300MW solar programme, to be co-located within NSP’s existing 600MW Shiroro Hydroelectric Power Plant concession area in Shiroro, Niger State.

    Speaking on the significance of the project, the Vice President said the signing of the agreement for the 20 MW solar plant is “a journey which is pivotal to our sustained growth and development as a nation.”

    “As a nation, our resolve is to take proactive steps to diversify our energy sources, reduce our carbon footprints and ensure a more sustainable future for generations to come. And this is a pioneering project in terms of hybridizing power in solar and hydro.

    “I believe that this is a harbinger of greater things to come. This project will serve to attract further investments in the space by growing both the business and financial models for such projects,” the VP added.

    The Vice President also commended the vision, innovation and commitment of the NSIA for the project, noting that “It is commendable as strategic partnerships like this will create opportunities for economic growth and technological advancement while simultaneously addressing the urgent need for clean and accessible energy.

    “This project will catalyze the realization of other hydro-solar projects and serve as a test case for deployment of solar energy onto the national grid.”

    The VP then implored the Nigeria Electricity Regulatory Commission (NERC), Nigeria Bulk Electricity Trading (NBET), Transmission Company of Nigeria (TCN), Bank of Industry (BOI) and all other relevant stakeholders in the project to ensure that they collaborate effectively with its sponsors to guarantee the timely delivery and operation of this project.

    “I also urge all stakeholders involved in this venture to uphold the principles of accountability, transparency and inclusivity throughout the project’s life cycle,” he added

    Earlier in his remark, minister of power, Adebayo Adelabu, said the initiative aligns with the critical priorities of his Ministry in terms of striving to increase energy output and also diversifying into renewable energy.

    He said the project is expected to attract additional capital as well as utilize the country’s abundant renewable energy resources, noting that it is a testament to the potential partnership to ensure sustainable development.

    On his part, MD/CEO of NSIA, Mr Aminu Umar-Sadiq, said the partnership “will deepen Nigeria’s clean energy portfolio, create jobs, and re-affirm our dedication to energy efficient solutions as a lever for socio-economic development. It further exemplifies NSIA’s role as a catalyst for positive change, steering Nigeria towards a more sustainable future.”

    Read Also: Cancer: MACA, NSIA-LUTH collaborate on advocacy, improved care for patients

    In the same vein, the Executive Vice Chairman/CEO of North South Power Company Limited, Engr. Olubunmi Peters affirmed the company’s dedication to renewable energy solutions by stating its strategic intent to embark on this Solar-Hydro Hybridization Project,

    He noted that the project “is a testament to our sustained focus on renewable energy as an integral component of economic growth. Through this project, we have further revalidated our over-arching mandate to uphold the highest standards of environmental and social responsibility, demonstrating innovation and market leadership.”

    Officials from the NSIA, North-South Power and other stakeholders in the power sector witnessed the signing ceremony.

  • Senate demands details of of $1.5bn road fund with NSIA

    Senate demands details of of $1.5bn road fund with NSIA

    The Senate on Thursday demanded details of how the Nigerian Sovereign Investment Authority (NSIA) spent $1.5billion remitted to it by the Federal and State governments for road construction.

    The Senate Committee Finance made this request during a meeting with representatives of the Managing Director of the NSIA, Aminu Umar-Sadiq, in Abuja.

    The Chairman of the Committee, Senator Sani Musa, said the request has become imperative as there was little or no information on the operations of the NSIA.

    In his contribution, a member of the committee, Senator Adamu Aliero, said the only “visible project” that could be identified with the agency was the Abuja-Kaduna Expressway, still under construction.

    He added: “You have received $1.5billion to invest. How are you using the money?

    “Give us the details of all your investments, the dividends and so on. We want to see the details.”

    Senator Ned Nwoko supported  Aliero’s position ans sought to know why the NSIA did not consider the 2nd Niger Bridge as a priority project for investment.

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    Nwoko stated that though the main bridge project had been completed, the bridge could not be put to use by motorists due to the absence of required bypasses.

    “The 2nd Niger Bridge has been built but not being used because of the lack of bypasses.

    “Why can’t you fund the bypasses? The NSIA can fund the  bypasses, especially on the Asaba end. The bridge is now wasting at a loss to the government.”

    The committee directed the agency to supply the information at the next adjourned date of the committee, where Umar-Sadiq is expected be present.

  • NSIA, All On collaborate on energy access

    NSIA, All On collaborate on energy access

    The Nigeria Sovereign Investment Authority (NSIA) and All On, a Nigerian impact investor focused on renewable energy, have joined forces to bring light and opportunity to energy-deprived communities across Nigeria.

    Through the deployment of Distributed Renewable Energy (DRE), the initiative aims to reach areas neglected by traditional grid infrastructure by utilizing small-scale solutions such as solar mini-grids and home systems.

    Caroline Eboumbou, Managing Director of All On, emphasized how profitable and efficient the DRE offer is by stating that “Mini-grids alone hold the potential to empower millions of low-income households and small businesses, while generating a staggering $10 billion in annual revenue”.

    To achieve this Eboumbou stated that All On’s Demand Aggregation for Renewable Technologies (DART) programme, launched in 2022 “will acts as a powerful catalyst, bringing together multiple DRE developers and negotiating advantageous prices for renewable energy components, as well as securing financing from commercial lenders”.

    According to her, “in less than two years, DART has funded 12 companies, paving the way for over 40 mini-grids and 47,000 connections. Over 230,000 lives and businesses are set to be positively impacted, a testament to DRE’s transformative power,” stated Eboumbou.

    The Chito Community project in Benue State she disclosed “stands as a shining example of the impact of DRE. This 350KW mini-grid, the largest isolated project in the state, will positively impact over 7,000 households and businesses, opening doors to new possibilities and economic growth”.

    Beyond illumination, DRE has far-reaching effects on economic development, entrepreneurship, and healthcare services. It provides communities, particularly women, with the opportunity to participate meaningfully in the economy and shape their own destinies.

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    Recognizing the potential of DRE, Aminu Umar-Sadiq, NSIA’s MD/CEO, called for continued investment from development partners, providing both capital and technical assistance. He also challenged the private sector “to innovate and develop scalable, affordable DRE solutions”.

    According to him, “we are committed to leading the charge in this collective effort. We are working closely with partners to address the barriers to DRE adoption and to scale up its deployment across Africa. We believe that DRE is not just a solution to energy poverty but a catalyst for a more sustainable, equitable, and prosperous future.”

    DRE he said lies at the heart of NSIA’s Renewable Investment Platform for Limitless Energy (RIPLE), which aims to achieve expanded energy access to the unserved and underserved segments of the population. RIPLE is expected to replace diesel-powered generation for commercial and industrial consumers.

    To demonstrate this commitment, NSIA has launched initiatives such as the Construction Finance Warehouse Facility (CFWF), established in collaboration with InfraCredit. This N10 billion facility unlocks long-term capital for sustainable greenfield infrastructure projects, attracting further investment through domestic capital markets.

    However, Umar-Sadiq stressed that more enabling policies, financial incentives, and streamlined regulatory processes are essential for DRE to reach its full potential.

  • NSIA commits $500m to infrastructure  

    NSIA commits $500m to infrastructure  

    Managing Director and Chief Executive Office of Nigeria Sovereign Investment Authority (NSIA), Aminu Umar-Sadiq, has said NSIA  will spend $500 million on infrastructure.

     Umar-Sadiq spoke yesterday during House of Representatives’ Ad Hoc Committee probing NSIA. 

    He reiterated that NSIA has a robust investment portfolio in critical sectors as agriculture, healthcare, finance, tech, innovation, and power.

     In addition, he said NSIA developed institutions and platforms to improve the financial market ecosystem, and a 10-MW solar power project expected to facilitate over 500 direct and indirect jobs.

     Umar- Sadiq noted net assets of NSIA grew from N156 billion in 2013, to N1. 017 trillion end of 2022, and remained profitable in its 10 years, and net contribution grew from $1 billion to $2.27 billion as at December 2022.

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     Lateef Shittu, representative of director general of Nigeria Governors Forum (NGF), said local governments were stakeholders with states, and represent a significant holding.

     Shittu affirmed the collaboration of the forum with NSIA, saying they were satisfied with the interactions and clear about objectives of the authority.

    He said in 2022, the governors requested a presentation on operations of NSIA from the management, adding “we are satisfied with the presentation and what was being done”.

     He reiterated that, “every single project executed by the NSIA is located within a local government, so they are beneficiaries of the NSIA projects.”

     The Chairman of the Committee, Hon. Ademorin Kuye, said the objective of the investigation was to ensure that the statutory provisions of the law establishing the Authority was adhered to.

    He stated that the House wants to be able to have answers to questions from Nigerians on how the funds of the agency were being managed, adding that if the need arises, the committee would visit sites of projects being handled by the Authority to ensure value for money.

     The Committee commended management and staff for the detailed responses that were provided which alludes to its high level of governance and transparency.

  • NSIA shareholders get N1.45 dividend

    Shareholders of NSIA Insurance have approved a dividend payment of 1.45k per share for the 2018 financial year.

    The underwriting firm’s Total Revenue from operations increased by 27 per cent from N5.46 billion in 2017 to N6.91 billion in 2018 while Total Assets for the year ended 2018 increased by 15 per cent to N17.92 billion compared to N15.57 billion reported for the year ended December 31, 2017.

    On the other hand, Profit Before Tax (PBT) improved significantly by 39 per cent to N892.29 million in 2018 from N640.75 million reported in 2017, while Profit After Tax (PAT) improved significantly by 67 per cent to N670.45 million in 2018 from N402.35 million reported in 2017.

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    The Gross Premium Income for the company increased by 16 per cent to N6.3 billion in 2018 from N5.48 billion reported in 2017, while the Net Premium Income improved by 25 per cent to N3.16 billion in 2018 from N2.54 billion reported for the year ended December 31, 2017.

    There was also an improvement in the earnings per share with a 75 per cent jump to 7k in 2018 from 4k in 2017.

    Addressing shareholders at the Annual General Meeting (AGM) of the company, its Chairman, Ituah Ighodalo said NSIA Insurance had made good its promise of maximising the returns of its shareholders’ investments in the business, lending credence to the company’s values of integrity, care, innovation and professionalism.

  • N617.7b assets open new funding options for NSIA

    The Nigeria Sovereign Investment Authority (NSIA), manager of Nigeria’s Sovereign Wealth Fund (SWF), has in its 2018 results, posted N44.34 billion income and 16 per cent growth in total assets to N617.7 billion. The figure raises hope for more infrastructure funding and support for key sectors of the economy, writes COLLINS NWEZE.

    Infrastructure funding and building of savings base for the economy are crucial in achieving sustained economic growth .

    That explans why the Federal Government, set up the Nigeria Sovereign Investment Authority (NSIA) to help boost savings and bridge infrastruture gap.

    The NSIA was  established by the Nigeria Sovereign Investment Authority (Establishment, among others) Act 2011 to manage funds in excess of budgeted oil revenue and promote infrastructure development.

    The Managing Director of NSIA, Uche Orji, said the NSIA Act mandates the organisation to run three ring-fenced funds – stabilisation fund, future generations fund, and Nigeria infrastructure fund with asset allocation of 20:30:50 respectively.

    In 2018, NSIA’s income rose to N44.34 billion,  giving it room to fund more developmental projectss.

    Analysts said that such performance in a year when many international markets under-performed and the global economy experienced a moderate pace of expansion, raises hope for economic growth.

    Highlights of NSIA’s activities and performance during the period shows that total comprehensive income (including the impact of foreign exchange gains) of N44.34 billion as against N27.93 billion the previous year. It achived total comprehensive income of N26.29 billion while total assets grew by 16 per cent to N617.70 billion.

    Return on Capital Employed (ROCE) on the core funds showed that  Stabilisation Fund (100 per cent Funds deployment); Future Generations Fund (81 per cent fund deployment) and Nigeria Infrastructure Fund (17 per cent fund deployment).

    Data from NSIA showed there were increased focus on domestic infrastructure projects specifically in agriculture, healthcare, and infrastructure enabling financial institutions.

    For instance, on healthcare, the company  reached financial close on three projects including a Cancer Centre at Lagos University Teaching Hospital (LUTH) and Advanced Diagnostic Centres at Federal Medical Centre Umuahia (FMCU) and Aminu Kano Teaching Hospital (AKTH). It also commissioned the LUTH cancer Centre which will soon be fully open for clinical operations.

    The Presidential Fertiliser Initiative, showed that increased output with approximately 12 million bags produced to date with a total of 18 blending plants participating. Presidential Infrastructure Development Fund (PIDF) attracted $650 million and commenced capital deployment across three of the major road projects: second Niger Bridge, Lagos – Ibadan Expressway and Abuja-Zaria-Kaduna-Kano Road.

    The joint venture of NSIA and UFF reached financial close on Project Novum, a fully integrated farm located on 3,500 hectares of land in Panda, Nasarawa State. The  NSIA having created InfraCredit, attracted other investors to the company and de-recognized it from the book.

    The Commodities Exchange (NCX) showed that progress has been made and the agency is in the process of choosing a strategic partner. There was also Investment in Basic Chemicals with OCP Morocco: Basic Chemical Platform to produce ammonia and other fertilizer products.

     

    Assets under management

    NSIA has core capital of $1.5 billion while other third party managed funds comprised of PIDF – $650 million; Debt Management Office – $122.60 million ($120.95 – Fair value 31 Dec 2017); Nigeria Stabilization Fund – N13.64 billion. There is also gross sum of $417.46 million ($350 million principal plus returns) repaid to the Nigeria Bulk Electricity Trading Company Plc following the expiration of the four-year investment term.

    The global market in 2018 experienced high volatility, however 2019 is expected to return to a relatively stable terrain. According to JP Morgan, there is a deceleration in growth momentum which is expected to end by midyear 2018 on account of policy changes that supports China easing and the Federal Reserve pausing.

    There are no apparent expectations of recession risks in 2019.  However, the Authority continues to monitor the market conditions with the view to leverage the upside risks that avail themselves in the market. We expect that our strategy will continue to deliver positive returns.

     

    Financial statement review

    The Authority’s performance for 2018 reflected the strength of the Authority’s strategy across all the funds as the Authority aggregate performance outstripped most global market indicators in the period.

    Equity market experienced a dramatic decline in the last quarter of 2018 as Investors were burdened with rising US central bank interest rates, lower than expected growth in Asian market particularly China and other political issues including Brexit, Eurozone and the China-US trade conflict, characteristically fueled Investor apathy for most of the year. However, in spite of these market challenges, the Authority’s fund performed favorably by generating aggregate returns of 8.2 per cent.

    Total income grew by 88.5 per cent, rising from N30.62 billion in 2017 to N57.73 billion in 2018.  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.

    Interest income – N23.82 billion (a component of Total income) earned in 2018 represents a nine per cent year-on-year increase from the N21.77 billion in 2017.  This underscores our commitment to generate fixed income returns from low-risk securities that generate predictable interest, and steady returns including Eurobonds, Treasury bills and other secured deposits.

    The Authority rebased its foreign denominated balances to N325/$ from N305/$, to reflect its foreign exchange transactions appropriately in line with its market. Therefore, the Group recognized a foreign exchange gain of N18.05 billion.

    Within the year, the Authority committed significant capital across all three ring-fenced funds and gained traction within the Nigeria Infrastructure Fund (NIF) as commitments were being made on approved project/investment opportunities. With respect to the other funds, the Authority continued to operate a diverse and global investment portfolio of traditional and alternative assets.

    The year was an eventful year with significant capital deployment in the priority sectors of Agriculture, Healthcare, Motorways and Power. Highlight of activities undertaken across the infrastructure sectors are provided below:

     

    Agriculture

    The agriculture sector remains a focus area to the Authority. Key programmes undertaken by the Authority within the period under review included: Presidential Fertiliser Initiative (PFI). Continuing its role as programme manager, the NSIA sustained the implementation plans for the PFI. As at year end, an addition 5.5 million bags of NPK 20:10:10 fertilizer had been produced and sold in Nigeria bringing the total project output from inception to date at over 12 million bags. Furthermore, two additional blending plants were accredited in Kaduna and Zamfara respectively bringing the number of plants to 18 in total. With PFI, NSIA is helping to reduce input induced food price inflation.

    Novum Agric Industries Ltd : Under the UFF-NAIC Fund ($200 million 50-50 co-sponsored agriculture fund with UFF Agric Fund), NSIA acquired a fully integrated farm located in Panda, Nasarawa State. Development of the farm land has commenced. The Authority expect to start farming activities in late 2019 with the completion of irrigation facilities expected to be finalized in second half of 2019.

    Following NSIA’s appointment as the programme manager of the PIDF, the Authority received the sum of $650 million from the National Economic Council. Funds have already been disbursed for construction works on Lagos-Ibadan Expressway,  Second Niger Bridge; and Abuja-Kaduna-Zaria-Kano Road. To date, NSIA has disbursed N77.6 billion under the PIDF programme. Other projects being undertaken under PIDF include Mambilla Hydro-Power Project and East West Road.

     

    Healthcare

    NSIA reach advanced stages in the implementation of three healthcare projects in the year. The first is the NSIA – LUTH Cancer Centre which is structured under a public-private partnership (PPP) arrangement between the NSIA and the LUTH. The project was for the rehabilitation, equipping and operation of an existing cancer centre co-located in LUTH. The centre was subsequently commissioned by President Muhammadu Buhari in early 2019. The centre will provide advanced radiotherapy and chemotherapy treatment services.