Nigeria Sovereign Investment Authority (NSIA), in a very impressive performance for 2014 notched N15billion in generated net income against a dismal N505 million for the preceding year (2013).
MrUche Orji, The Managing Director, announced this while addressing newsmen on Authorities Financial Year report on Monday in Abuja.
“Total revenue during the period stood at N7.2 billion, up from N1.96 billion.
“Change in fair value of assets was at N10.5 billion as opposed to a loss of N19.5 million during the 15 month period ended December 2013,’’ he said
He said investment securities grew from N45.1 billion to N118 billion during the period.
He said that borrowing which stood at N1.4 billion as at end of 2013, was fully liquidated while the authority invested N13.6 billion in subsidiaries and its associate as at the end of the financial year 2014.
The subsidiaries, he said, include NSIA Motorways Investment Company and KG Brussels as well as a stake in Nigeria Mortgage Refinancing Company were consolidated in the authority’s book.
He said that the prevailing exchange rate at the end of the financial year was N167.5 to a dollar.
“Our strong financial performance during the period in review came primarily from investments in secondary interests in private equity, developed market long only equities and return hedge fund investment,’’ he said
He said the operating performance was recorded against significant headwinds generated by sustained global financial crisis, weak demand, rapidly declining oil prices and a turbulent local operating environment.
Orji said that in the year under review, the NSIA ranking under the Sovereign Wealth Fund Institute Transparency Index (SWFI) was upgraded to nine points out of 10 from the previous forth position.
This new rating, he said, translated to a leap from global joint 33 to global joint second position, out of 51 Sovereign Wealth Funds ranked by SWFI.
“It also made us the only African fund to be ranked,’’ he said
He said that the outlook in 2015 remained volatile as European Central Bank commenced a quantitative easing programmed and the Swiss Central had upgraded its currency against Euro that led to significant swings in major currencies.
He assured the authority would diversify strategy for future generations and stabilisation funds, adding that the major focus would be on domestic market, especially in the power sector.
“We believe that the recent devaluation of the naira presents both challenges and opportunities in the domestic market.
“From our position as investors, we have seen incredible buying opportunities and we expect that infrastructure fund will become increasingly active in the domestic market as we take advantage of short term price dislocation,’’ he said