The Nigeria Sovereign Investment Authority (NSIA) would in 2015 be investing more in the domestic market where huge opportunities are gradually unfolding even in the face of weakened naira and soft oil prices, authorities there have said. The NSIA, managers of Nigeria’s $1 billion Sovereign Wealth Fund, would make most commitments especially in power, health care and social infrastructure, Uche Orji, NSIA chief executive officer, told a press conference on Monday as he officially announced the authority’s 2014 audited headline financial numbers. The full report is still awaited. Despite the weakened naira which affected in- vestments in 2014, the year brought in huge profits for the NSIA including N15.8 billion net comprehensive income, up from N505 mil- lion recorded during the 15-month operating period ended December 2013.
Orji said total revenue during the period stood at N7.2 billion, up from N1.96 billion, while net change in fair value of assets was at N10.5 billion as opposed to a loss of N19.5 million during the period. Investment securities grew from N45.1 billion to N118 billion during the period. Borrowing which amounted to N1.4 billion as at year end 2013, were fully liquidated while the authority invested N13.6 billion in subsidiaries and associates as at end of FY2014. Meanwhile, it was able to consolidate in its books two subsidiaries, the NSIA Motorways Investment Company and KG Brussels, as well as a stake in Nigeria Mortgage Refinancing (NMRC). “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 absolute return hedge fund investments; complemented by a long dollar currency position,” Orji noted again at the briefing.
This operating performance, he said, was re- corded against significant headwinds generated by sustained global financial crisis, weak demand, rap- idly dealing oil prices and a turbulent local operating environment. The NSIA has not done a huge amount of investments domestically which has earned it some criticisms but Orji assures that there would be clear investment in power locally as well as other assets where huge opportunities exist. He said the decision to limit the fund’s exposure to naira is strategic and not just luck, so also that of not being very long with the euro which they thought could be a challenged currency as well as to avoid some assets initially in Swiss Ranch.
