By Emmanuel Addeh
The Managing Director of the Nigeria Sovereign Investment Authority (NSIA), Mr Uche Orji, Tuesday disclosed that the organisation which manages the country’s sovereign wealth fund tripled its profits in 2020.
Speaking when he appeared on the “Good Morning Show” on Arise Television, THISDAY’s broadcast arm, Orji attributed the relative success recorded by the NSIA last year to the business decisions taken by the authority.
He explained that some of NSIA’s portfolios were up by as much as 50 per cent in dollar terms in 2020, predicting that although the financial technology sector ruled the market last year, there will be a broader profit ecosystem this year as countries continue to open up on the back of increasing Covid-19 vaccine jabs.
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In its 2020 audited financial statement released on Tuesday, the
investment institution said it grew income from N36.15 billion in 2019 to N160.06 billion in 2020.
NSIA attributed the performance to its investments in international capital markets, improved contribution from subsidiaries and affiliates and exchange gain from foreign currency positions.
According to the financial report, NSIA recorded N109 billion as core income compared to N33.07 billion recorded in 2019, excluding devaluation gain of N51 billion.
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It also posted a 33 percent growth in net assets to N772.75 billion from N579.54 billion recorded the previous year.
Uche Orji, chief executive officer of NSIA, said 2020 fiscal year was characterised by high volatility and global market uncertainty on account of Covid-19 in the first half.
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Sukuk is a
form of Islamic banking that comply with Sharia by paying profit not interest generally by involving a tangible asset such as land in the investment.
Orji said the NSIA also plans to inject $50 million equity into an innovation fund that develops technology infrastructure in the country, most especially in data centres, data networking, software, pharmaceutical manufacturing, and many others.
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“I believe we will be coming into the market this year most likely, we will be coming via the Sukuk programme, which is something to note for the road projects.”
Orji, however, did not disclose the amount the NSIA is planning to raise via Sukuk.
The Nigeria Sovereign Investment Authority (NSIA) says that it recorded a total of N160.06 billion in comprehensive income in 2020, representing a 343% growth compared to N36.15 billion recorded in 2019.
The growth was attributed to strong performance from its investments in international capital markets, improved contribution from subsidiaries and affiliates and exchange rate gain from foreign currency positions despite challenges of the coronavirus pandemic.
This disclosure was made by the Managing Director of NSIA, Mr Uche Orji, at a virtual media conference on the presentation of the NSIA’s 2020 Audited Financial Statements and Performance Review on Tuesday in Abuja.
Orji said that the authority achieved 33% growth in Net Assets amounting to N772.75 billion as against N579.54 billion in the previous year.
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