By Philemon Adedeji
The Nigeria Sovereign Investment Authority (“NSIA” or “The Authority”), manager of Nigeria’s sovereign wealth fund, has announced its audited financial results for the year ended December 31, 2022.
The results indicated that financial performance underscores the resilience of the NSIA’s investment strategy and the quality of its earnings, despite volatility, headwinds across global market
In its audited results, the investment institution announced an impressive performance in its Net assets which amounted to N1.02 trillion at the close of 2022 financial year (FY), reflecting a marginal increase of 10.5 per cent increase from the N919.73 billion recorded in prior financial year 2021, while Total Assets reported down marginally from N1.227 billion in FY 2021 to N1.032 billion in FY 2022, representing a declined of 15.9 per cent.
The NSIA said its non-volatile revenue, such as interest income, revenue from infrastructure business, and management fees earned from fiduciary activities, increased by 34.5 per cent (N15.7 billion) year-over-year. It noted that its total comprehensive income stood at N96.96 billion in 2022, representing a decline of 34 percent compared to 147 billion in 2021.
The NSIA attributed the decline to strong macroeconomic headwinds.The institution said although its earnings are lower than that of 2021, it remained confident in its investment strategy and would continue to explore opportunities to mitigate risks and achieve its investment objectives.
The NSIA said the 2022 fiscal year was marked by unprecedented shocks, such as the COVID-19 lockdown in China, the Russia-Ukraine conflict, food and energy crises, supply-chain disruptions, soaring inflation, and monetary policy tightening, which impacted the financial markets.It said its well-diversified portfolio continues to provide the resilience to withstand market challenges as evidenced by the results.
The breakdown under total assets revealed cash and cash equivalents which amounted to N60.185 billion in 2022 financial year, showing a declined of 77.7 per cent from N269.6 billion achieved in prior financial year, as investment securities gained a 9.8 per cent to N628 billion in FY 2022 from N571.6 billion recorded as of end of December 31, 2021, while Loan and receivables increased impressively by a decent 110.8 per cent from N15. 467 billion in the corresponding period to N32.610 billion in the comparable period but property and equipment reported for the period down by 0.8 per cent to N5.119 billion in 12 months of 2022 from N5.161 billion in 12 months of 2021.
In addition, investment institution total liabilities announced in 2022 financial year declined largely by 95 per cent to N16.019 billion in 2022 financial year from N308.1 billion in the comparable period.
An investment institution total income reported for the period ended December 31, 2022 amounted to N111.4 billion from N154.9 billion during the preceding period, reflecting a marginal decrease of 28 per cent
From the profit and loss figures, the group Profit before tax (PBT) reported for the period dropped by 31 per cent from N148.5 billion accounted in prior financial year 2021 to N102.3 billion accounted in the comparable period of 2022, while Profit after tax (PAT) recorded declined by 34 per cent to N102.4 billion in 12 months of 2022 from N153.6 billion in 12 months of 2021.
Earnings from interest income, infrastructure business revenue, and fiduciary activities’ management fees increased by 34.5 per cent amounting to N15.7 billion year-on-year growth.
The Vice Chairman of Highcap Securities Limited, David Andori commented on the results that profit declined but Net Assets went up. Perhaps there was little profit from normal course of business in addition to extraordinary income which was credited directly to the reserve hence, increase in net assets.
An investment institution of the Federation set up to manage funds in excess of budgeted hydrocarbon revenues. NSIA play a leading role in driving sustained economic development for the benefit of all Nigerians by building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure, providing stabilisation support in times of economic stress.
The Authority expects the challenging macroeconomic environment to prevail for the larger part of 2023 as a result of the lingering effect of the Russia-Ukraine conflict, the activities of central banks of developed economies in curtailing inflation, and deglobalization challenges.
The annual report indicates that ESG, Sustainability and Climate finance will play a vital role in NSIA’s investment approach and strategy going forward while the Authority will continue to drive direct investments in its core areas – healthcare, gas industrialization, technology, power, and agriculture.
The Nigeria Sovereign Investment Authority is an investment institution of the Federation set up to manage funds in excess of budgeted hydrocarbon revenues. Its mission is to play a leading role in driving sustained economic development for the benefit of all Nigerians through building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure, and providing stabilization support in times of economic stress.
NSIA operates three mandate funds: The Stabilization Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund.
Commenting on the results, the Managing Director and Chief Executive Officer of NSIA, Aminu Umar-Sadiq said a respectable performance was recorded despite the challenges in the operating environment.
“Against market expectations and internal forecasts, NSIA closed the 2022 financial year with a respectable performance.
“This result underscores the robustness of our diversified portfolio, and the excellent commitment of the team.
“As we look to the future, NSIA is resolute in its commitment to delivering increased investments in critical sectors of the economy, driving growth across its funds, and attracting third-party capital into Nigeria’s infrastructure sector.
“In 2023, we will be resourcing our various platforms targeted at emerging sectors – renewable energy, sustainability, innovation, and healthcare – which will ensure the Authority achieves its dual objectives of delivering financial returns and impactful social outcomes,” Umar-Sadiq said.
The key projects the NSIA delivered in 2022 cut across core sectors of focus and the implementation of specialised federal government initiatives.
IATF2023 records $43.8bn closed deals
The African Export-Import Bank has disclosed that the third Intra-African Trade Fair (IATF2023) held in Cairo from 9 to 15 November witnessed the conclusion of business deals and transactions valued at US$43.8 billion.
In the final tallies released in Cairo, the organisers of the continental event said that the amount represented the value of 426 deals concluded in 21 sectors covering 52 countries. At a press conference to announce the results, Executive Vice President (Intra-African Trade Bank) at Afreximbank, Mrs Kanayo Awani, also announced that 130 countries participated in the trade fair, which attracted 1,939 exhibitors and 28,282 participants who attended physically and through the IATF virtual platform.
One of the notable transactions included the Export Agriculture for Food Security Framework executed by several African countries (as Origin Countries) and ARISE Integrated Industrial Platforms, Arise IIP (as Anchor Investor) to which Afreximbank committed US$2 billion to boost production, processing, and intra-African trade in agricultural products and to provide African farmers and agribusinesses with opportunities to access larger markets across the continent.
Mrs Awani also said that the IATF had successfully established itself as the premier trade and investment event in Africa, with the unique capacity to increase intra-African trade and investment, especially in the context of implementing the African Continental Free Trade Area (AfCFTA) Agreement.
“Building on the successes of IATF2018 and IATF2021, I am proud to say that the buzz and energy generated by IATF2023 will be felt across Africa and beyond for many years to come. Together, we have explored new possibilities and opened new doors for a brighter future for our continent,” she added.
IATF2023 kicked off on 9 November and included an official opening ceremony, a Presidential Summit which was addressed by President Abdel Fattah Al Sisi of the Arab Republic of Egypt, a Trade and Investment Forum, the Creative Africa Nexus (CANEX), an African Auto Forum, AU Youth Entrepreneurship Programme, a Sub-Sovereigns Conference, a Diaspora Summit, an African Industrialization Week and an African Tourism Sustainability and Investment Forum. A series of side events were also held as part of the trade fair.
The next edition of the IATF will be hosted in 2025 by Algeria.
Investors record positive gains, as NGXASI advance by 0.43%
Investors yesterday recorded positive gains on the Nigerian equities market following Monday’s losses.
According to data obtained from the Nigerian Exchange Limited (NGX) website, the NGX Market CAP recorded a gain of N165.99 billion in Naira terms.
The NGX All-Share Index (NGXASI) also advanced by 0.43 percent, closing at 71,250.17 basis points, compared to the previous day’s loss of 0.66 percent, which closed at 70,946.83 basis points. With the growth, the NGXASI now stands at 39.02 percent.
The total volume traded also advanced by 20.93 percent to close at N433.57 million, valued at N11.11 billion and traded in 7,016 deals.
The Gate Index closed flat at 183.36, while the Toni index advanced by 0.27 percent to close at 375.28 basis points.
At the close of trading, the market recorded 40 gainers, 15 losers, and 64 unchanged. NSLTECH topped the gainers list, while ABBEYBDS topped the list of losers.
UACN was the most traded stock by volume with N61.71 million, while NIDF was the most traded stock by value with N2.22 billion units traded.
UACN also had the highest volume contribution with 14.23 percent, while UBA and GTCO followed closely.
According to the value chart, NIDF is at the top with a 20.0 percent contribution. AIRTELAFRI and MTNN followed closely behind.
SEC DG calls for multifaceted approach to enhance capital market growth
The Director-General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda has called for a multi-faceted approach to enhance the growth of Nigeria’s capital market.
The SEC DG made this known while addressing journalists at the 2023 conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) held in Lagos at the weekend.
According to Yuguda who was represented by the Executive Commissioner Operations, SEC, Mr Dayo Obisan, “Effectively harnessing the capital market for national development entails a multi-faceted approach, these include deploying more infrastructure, fostering more public-private partnerships, establishing specialised entities like special purpose vehicles (SPVs), listing state-owned enterprises, issuing green bonds to support sustainable projects, and bolstering small and medium enterprises among others.”
According to him, the revised capital market master plan underscored SEC’s commitment to deepening and. repositioning the financial market as a key driver of sustainable economic growth.
“The master plan which represents collective aspirations of the capital market community is focused on driving initiatives geared towards growing and deepening the market with the ultimate goal of accelerating the emergence of our dear country in the top 20 economies by the year 2025,” Yuguda said.
The SEC DG added that synergy holds the potential of unleashing capital market prowess and paving the way for a prosperous future.
According to him, achieving the objective necessitates an increased utilisation of market mechanisms and instruments to raise funds and stimulate economic advancement.
He pointed out that the commission would continue to introduce new ideas and policies that would support the development and regulation of a capital market that is dynamic, fair, transparent, and efficient to contribute to the nation’s economic development, noting that investors protection plays a crucial role in the development and integrity of the capital market.
Also speaking at the event, the Deputy Director, SEC Lagos Zonal office, Mr John Briggs, urged the government to create infrastructure financing instruments that would facilitate easy servicing of obligations.
“We have encouraged a lot of infrastructure funds like sukuk, and green bonds and we are even talking about blue bonds to develop the market.”
“The capital market has created the conducive environment to ensure a transparent and dynamic market which would continue to attract investment,” he said.
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