Nigeria Sovereign Investment Authority Posts Record N1.86tn Profit for 2024, Expands Infrastructure Investments Amid Pressures for Greater Returns

The Nigeria Sovereign Investment Authority (NSIA) has announced a record-breaking profit of N1.86 trillion for the 2024 fiscal year, marking another milestone in its financial performance.

This represents a significant rise from the N1.17 trillion recorded in 2023, driven by a combination of strong returns from its diversified investment portfolio, gains from infrastructure projects, foreign exchange movements, and derivative valuations.

The agency’s audited financial results, released on Monday, reveal a 59% increase in Total Comprehensive Income (TCI), which surged to N1.89 trillion in 2024 from N1.18 trillion in the previous year. Even when foreign exchange gains and derivative valuations are stripped out, Core TCI still recorded an impressive 148% growth, reaching N407.9 billion. This was largely attributed to strong returns from NSIA’s investments in private equity, hedge funds, and Exchange-Traded Funds (ETFs).

The Authority’s total net assets almost doubled, increasing by 96% to N4.35 trillion as of December 2024 from N2.22 trillion in 2023. Meanwhile, cumulative retained earnings reached N3.74 trillion.

While these numbers paint a picture of financial strength, the NSIA continues to face scrutiny. The agency, established in 2011 to serve as Nigeria’s sovereign wealth fund and a vehicle for investing government resources, has long been criticized for its failure to place Nigeria’s money in highly lucrative investments. Though its financial performance has improved in recent years, there is growing expectation for the NSIA to deliver even stronger returns for the country.

The NSIA was created during the administration of former President Goodluck Jonathan as a strategic investment agency responsible for managing Nigeria’s excess oil revenues. Unlike many sovereign wealth funds globally, which aggressively pursue high-yield investments in global markets, NSIA initially adopted a conservative investment approach, focusing on stabilizing funds and financing critical infrastructure.

Over the years, critics have accused the agency of failing to maximize Nigeria’s sovereign wealth potential. Unlike wealth funds in countries like Norway, Saudi Arabia, or the UAE—which have successfully built multi-trillion-dollar investment portfolios by investing in high-yield assets—NSIA has historically been slow in making bold investment moves. For instance, across the Middle East, funds controlled by the UAE, Qatar, and Saudi Arabia invested a record $82 billion in 2024, a rise of more than 10 percent from 2023.

For much of its existence, the NSIA’s profits were seen as modest compared to Nigeria’s economic needs. Some financial experts argue that the government has failed to empower the agency to operate at the scale required to make significant wealth-generation strides, as seen in other oil-rich nations. Instead of aggressively investing surplus revenues during Nigeria’s oil boom years, successive administrations either depleted the country’s savings or channeled them into infrastructure projects with longer-term return horizons.

However, the narrative has shifted in recent years. The NSIA has ramped up its investment activities, diversifying into key financial assets, private equity, hedge funds, and real estate, among others. This recent uptick in investments has contributed to its record-breaking profits in 2024, but expectations remain high for the agency to deliver even greater value.

Beyond financial gains, NSIA has played a crucial role in infrastructure development across Nigeria. The agency has been instrumental in financing and executing major national projects, including the Lagos-Ibadan Expressway, the Second Niger Bridge, and the Abuja-Kaduna-Zaria-Kano Road. These projects, which are essential to Nigeria’s economic expansion, have been partially funded by $342.8 million in recovered funds, including $311.8 million from the Abacha family.

While these infrastructure investments are vital for Nigeria’s long-term development, some believe that the NSIA has focused too much on domestic projects with slow return cycles rather than pursuing more aggressive investment strategies in global markets. Many sovereign wealth funds worldwide use excess national revenues to invest in high-growth industries such as technology, renewable energy, and global real estate.

NSIA’s Managing Director and CEO, Aminu Umar-Sadiq, defended the agency’s approach, stating that the latest financial results reflect disciplined execution and strategic investment choices.

“We are excited about this super result, I must tell you. And it’s an outcome of actual core work done by our team… not forex gains, not revaluation, but actual hard work,” he said in an interview with BusinessDay.

Umar-Sadiq emphasized that the agency’s projections for 2025 look even stronger and reassured stakeholders that the NSIA is committed to transparency and accountability.

“More importantly, every money is accounted for,” he added.

Under a newly appointed Board, chaired by Olusegun Ogunsanya, the NSIA has pledged to strengthen its governance framework and ensure that all investments align with the country’s economic priorities. The Board is expected to oversee a more aggressive expansion of the NSIA’s investment footprint, both locally and internationally.

However, the NSIA remains under pressure to improve its returns further as Nigeria’s economy continues to struggle with high inflation, weak revenue collection, and an over-reliance on borrowing. With a more ambitious strategy, it is believed the sovereign wealth fund could serve as a vital buffer against economic shocks.

There are calls for the agency to explore more diversified investment options beyond traditional assets and domestic infrastructure. Some analysts believe that NSIA should expand its global footprint by investing in emerging industries, especially in high-tech sectors and renewable energy.