A Review of the Nigerian Energy Industry

Nigeria Sovereign Investment Authority earned N15.8bn in 2014

30 March 2015, Abuja – The Nigeria Sovereign Investment Authority on Sunday said it earned a net income of N15.8bn in the 2014 financial year.

Dr. Ngozi Okonjo-Iweala, Minister of Finance

The agency, in its annual report made available to our correspondent by the Managing Director/Chief Executive Officer, Mr. Uche Orji, said the amount was a significant improvement on the N505m recorded in the 2013 financial period.

The NSIA is the agency currently managing the Sovereign Wealth Fund, which was set up in March 2013 by the Federal Government following the injection of an initial investment of $1bn.

The initial investment was later followed with an additional investment of $550m about nine months later.

The SWF is made up of three funds – the Future Generation Fund, Nigeria Infrastructure Fund and the Stabilisation Fund.

The 2014 annual report stated that the agency recorded a N10.5bn change in value assets as well as total operating and administrative expenses of N1.6bn.

Key drivers of performance, according to the report, included investments in secondary interests in private equity, development in market equities, and returns on hedge fund investments.

This, it added, was complemented by a long dollar currency position versus other currencies.

It stated, “The NSIA reports net comprehensive income of N15.8bn in 2014, up from N505m in 2013.

“Key highlights include revenue of total revenue of N7.2bn and change in fair value of assets of N10.5bn, and total operating and administrative expenses of N1.6bn.”

Orji said each of the three funds had return objectives that would guarantee the highest rate of return for Nigeria.

He said, “The reality is that we are going to earn commercial returns on infrastructure side as well as earning returns that will match the benchmark that we have set for the Future Generation Fund and the Stabilisation Fund.

“Our objective at this point is to earn consistent profit. The Act says that after five years of consistently making profit, we have to repatriate dividends to all the tiers of governments that own this fund. It is one of our objectives and that is what we intend to achieve.”

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