By Tony Obiechina Abuja

The Nigeria Sovereign Investment Authority (NSIA) yesterday disclosed that its net assets grew from N156bn in 2013 to N4.35 trillion in 2024.

Similarly, the Authority has remained profitable for 12 consecutive years, leading to cumulative retained earnings of N3.

Managing Director and Chief Executive Officer of NSIA, Aminu Umar- Sadiq made these disclosures at a media engagement in Abuja, highlighting its audited financial results for the 2024 fiscal year.

According to him, the results underscored the resilience of the authority’s investment strategy and the strength of its earnings, driven by a well-diversified revenue base and robust risk management practices, despite a challenging global macroeconomic and geopolitical environment.

Total operating profits, excluding share of profits from associates and Joint Venture (JV) entities, increased from N1.17 trillion in 2023 to N1.86 trillion in 2024, driven by the strong performance of

NSIA’s diversified investment portfolio, infrastructure assets, gains from foreign exchange movements, and derivative valuations.

In addition, Total Comprehensive Income (TCI), inclusive of share of profits from associates and JV entities, reached N1.89 trillion in 2024, reflecting a 59 per cent increase from N1.18 trillion in 2023.

Core TCI (excluding foreign exchange and derivative valuation gains) rose by 148 per cent to N407.9 billion in 2024 compared to N164.7 billion in 2023, supported by robust returns on financial assets measured at fair value through profit and loss, including collateralised securities, private equity, hedge funds, and Exchange-Traded Funds (ETFs).

Umar-Sadiq said the authority’s outstanding financial performance in 2024 reflected the “strength of our strategic vision, disciplined execution and unwavering commitment to sustainable socio-economic advancement.”

He said, “By leveraging innovation, strategic partnerships and sound risk management, we have not only delivered strong returns but also created value for our stakeholders

“As we move forward, we remain focused on driving economic transformation, expanding opportunities, scaling transformative impact and ensuring long-term prosperity for current and future generations of Nigerians.”

The CEO reaffirmed the authority’s commitment to managing the country’s SWF, and delivering the mandates enshrined in the NSIA Act.

He said NSIA remained poised to continually create long-term value for its stakeholders by delivering excellent risk-adjusted financial results, developing a healthy and well-diversified portfolio of assets and large-scale infrastructure projects, and enhancing the desired social outcomes.

He noted that NSIA was committed to its mandate of prudent management and investment of Nigeria’s sovereign wealth.

“In adherence to its Establishment Act, NSIA prioritises transparency, disclosure, and effective communication with all stakeholders and counterparties,” he said.

He pointed out that in the year under review, a new board, led by Olusegun Ogunsanya as Chairman, was appointed by President Bola Tinubu, in accordance with the provisions of the NSIA Act.

The new board will provide strategic direction and oversight, in addition to playing a pivotal role in critical decision making.

He remarked that under the guidance of the Board, the Authority will retain focus on its primary mandate of creating shared value for all stakeholders based on its continued adoption of corporate governance practices.

“NSIA prides itself an investment institution of the federation established to manage funds in excess of budgeted oil revenues and its mission is to play a pivotal 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 the county’s infrastructure, and providing stabilisation support in times of economic misadventure,” he added.

By Tony Obiechina, Abuja 

The Deputy Governor, Corporate Services, Central Bank of Nigeria (CBN), Emem Usoro, says the bank recapitalisation exercise being implemented by the apex bank is a critical step towards achieving Nigeria’s ambition of building a $1tn economy.

Usoro stated this at the opening session of the 36th edition of the Finance Correspondents Association of Nigeria and Business Editors (FICAN) seminar held in Abuja on Monday.

The event had as its theme “Banking recapitalisation towards a $1tn economy.”

The CBN had announced an upward review of Nigeria’s minimum capital requirements for commercial, merchant, and non-interest banks.

The minimum capital base for commercial banks holding national authorisation is N200bn, and for those with regional authorisation, it is N50bn. Merchant banks will also require a minimum capital requirement of N50bn, while non-interest banks holding national and regional authorisations must adhere to new minimum requirements of N20bn and N10bn, respectively.

Usoro said, “As you may know, the global financial system and architecture have assumed a new dimension even before the new administration of Donald Trump in the United States of America. Globalisation has broken the limits of financial flows, and investors have inadvertently taken full advantage of the opportunities.

“However, countries and their financial systems must be prepared and ready to utilise opportunities created by financial globalisation through appropriate policy support and actions.

“As you are aware, the Nigerian banking system has also undergone reform, including bank recapitalisation and consolidation exercises. The 2004 banking sector consolidation and recapitalisation exercise, which set the limit of ₦25bn minimum capital fees for banks, brought the banks from 89 to 25. It was a noble idea that the Central Bank of Nigeria implemented in line with the emerging developments at that time.

“As we work towards building a $1tn economy, we must consider the recapitalisation of our banks to be able to fund, finance, and power the economy and favourably compete with its peers globally.

“We should particularly pay significant attention to bank recapitalisation to ensure that our banks are strong, resilient, and stable enough to carry out financial intermediation and the much-needed financing of development projects and programmes.

Although Usoro admitted that building a $1tn economy is not an easy task, she added, “it should require careful planning, robust and clear policy direction, dutiful implementation, and a wide commitment to stakeholders that will galvanise the various sectors of the economy.”

The deputy governor pointed out that discussions at the seminar, which include regulatory, industry, and media perspectives, are crucial in charting the way forward.

“As we aspire to build a $1tn economy, all hands must be on deck to achieve this. This gathering is essential to bring to the fore the bank’s effort and policy direction.

“The push for the capitalisation of banks will no doubt improve the strength and health of the financial system, deepen financial intermediation, and promote healthier competition that will strengthen our payment system.

“Therefore, it is my sincere expectation that at the end of your deliberation at this seminar, participants will better appreciate the rationale and ideas behind the goal of attaining a one trillion economy and its operational mechanism.”

The Nigerian Shippers’ Council (NSC) has advised exporters to adopt group export strategies to remain competitive following the recent 14 per cent tariff imposed by the United States on Nigerian exports.

NSC’s Deputy Director, Stakeholders Services, Hannah Adaba made the recommendation during a sensitisation programme held in Kaduna State.

The event aimed to educate stakeholders on the council’s online portal for the registration of regulated port service providers and users.

“When you export as an individual, it’s difficult to enjoy rebates,” she explained.

“But with group exports, exporters can share the tariff burden. This way, they can maximise profits and stay in business.

Adaba represented the NSC Executive Secretary and Chief Executive Officer, Mr. Pius Akutah.

She highlighted that one of the key benefits of registering on the NSC portal was access to valuable information that could help stakeholders grow their businesses.

She added that the portal would also connected service providers and users, offering details on shipping destinations and associated costs.

“Additionally, the system will help update NSC records and enhance the traceability of individuals involved in fraudulent activities, thereby reducing malpractice at the ports.”

Similarly, the State Coordinator of the Nigerian Export Promotion Council (NEPC) in Kaduna, Mr. Kabiru Yusuf, underscored the importance of registration for shippers and exporters.

He encouraged exporters to explore alternative markets in light of the U.S. tariff.

According to Yusuf, the new U.S. trade policy should not deter Nigerian exporters, as global opportunities remain abundant.

“The world is a global village. If one market becomes difficult—like the U.S.—we should pivot to others with less stringent policies, such as those in the East,” he said.

“If the U.S. is willing to engage in dialogue, that’s great. But in the meantime, we must start looking elsewhere to safeguard our export businesses.”(NAN)