The Nigerian Sovereign Investment Authority (NSIA) recorded drops in most of its income sources for last year, its audited financial results have shown.
The drops resulted in a sharply weaker revenue and caused net profit to fall by one-third.
NSIA, an investment agency of the Nigerian
government, manages funds in excess of budgeted hydrocarbon revenues, investing them in a range of medium and long-term assets on behalf of the government.
Total income for 2022 diminished by 28.1 per cent to N154.9 billion, taking a hit from a slide in net gain on financial assets and net foreign exchange gain.
Income streams like investment income as well as the share of profit of investments accounted for using the equity method also dropped.
NSIA made a provision in the sum of N1.4 billion from its revenue as an impairment charge on financial assets in contrast to the N544.8 million earned as write-back on financial assets a year earlier.
In a separate document, the authority linked the slump in its earnings to the performance of its Future Generations and Stabilization portfolios that are invested in emerging and developed financial market instruments.
“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,” said Aminu Umar-Sadiq, NSIA’s chief executive.
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NSIA recorded increases in costs like investment management and custodian fees, depreciation and amortization as well as operating and administrative expenses, further weakening the bottom line.
Profit before tax decreased by 31.1 per cent to N102.4 billion, while profit for the year stood at N102.4 billion compared to N153.6 billion in the same period of 2021.
The organization highlighted the key projects it executed under the Presidential Infrastructure Development Fund during the year as the Second Niger Bridge, the Lagos-Ibadan Expressway and the Abuja-Kaduna-Kano Highway.
Total assets for the year fell by 15.9 per cent or N195.1 billion to N1 trillion, the results showed.
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