- As assets hit ₦4.91trn, posts ₦322bn FX losses
- Sustains profitability amid global headwinds
BY COBHAM NSA – Despite its core operating performance staying strong amidst volatile economic effects, the Nigeria Sovereign Investment Authority (NSIA) has blamed foreign exchange volatility and transient U.S. tariff impacts as primary reasons for the percentage year-on-year drop in its 2025 profit to N161 billion.
To back up its claims of operational quality and reliability, the Authority said its total assets grew by 10.9% year-on-year, closing at ₦4.91 trillion ($3.42 billion) in 2025, noting that this resilient growth was underpinned by a total of ₦360.8 billion in capital contribution during the year and ₦478.8 billion in core earnings.
“This growth was driven by dynamic asset allocation, efficient liquidity deployment, a 35.8% increase in investment securities, and improved returns across multiple asset classes. Together, these factors contributed to strengthening the balance sheet”, the Authority said.
Additionally, the Group stated that its net asset value in USD increased by 19.8 percent, from $2.8 billion in 2024 to $3.4 billion in 2025 and according to the financial reports, “This growth was supported by a cumulative $241.2 million in capital injections during the year, combined with $320.2 million in net earnings from performance across core revenue streams. The increase underscores NSIA’s capacity to preserve and grow long-term shareholder value”.
Generally, the report card indicates that since inception, “NSIA has delivered consistent growth, achieving 13 consecutive years of earnings expansion and asset accumulation. From an initial $1 billion seed capital, augmented by additional contributions of $1.06 billion (totaling $2.06 billion contribution), NSIA’s Net Asset Value has grown to $3.40 billion, representing a 10.7 percent Compound Annual Growth Rate.
“This track record underscores NSIA’s strong financial stewardship and long-term value creation, underpinned by disciplined asset allocation, diversified investments, and strong risk management that ensure resilience across multiple economic cycles.”
This positive development, which demonstrates resilience despite challenging domestic and global economic conditions, was supported by a cumulative $241.2 million in capital injections during the year, combined with $320.2 million in net earnings from performance across core revenue streams, just as the Core operating income rose from ₦498.0 billion ($328.5 million) in the previous year to ₦525.3 billion ($349.1 million) in 2025, reflecting the Authority’s deliberate efforts to actively deploy capital across diverse asset classes.
The report also showed that the cheering news covered the Core Total Comprehensive Income (Core TCI) which increased by 17.4 percent year-on-year, from ₦408.0bn ($190.2m) to ₦478.8bn ($320.2m), reflecting robust performance across core operations and marking the highest Core TCI recorded since inception, both in Naira and in US Dollar terms
NSIA Managing Director, Aminu Umar-Sadiq, who released the figures at a press briefing in Abuja on Thursday, said the decrease in the profit margins were largely driven by external shocks rather than deterioration in underlying operations, explained that: “The impact on those numbers was largely because it coincided with the announcement of the tariffs in the U.S.”
He said, “For any institution that has exposure to global capital markets, particularly U.S. capital markets, you do remember the significant plunge that the markets took”, adding that the market reaction proved short-lived, as global markets corrected within weeks once the U.S. tariff impact was reassessed and investors’ confidence returned.
“But you saw over a period of a month or two months after Q1 of last year that there was significant market correction, such that all of the lows from the announcement of tariffs were completely wiped off,” the NSIA boss said, noting that investor confidence was bolstered by improved international relations and U.S. diplomatic efforts.
According to him, the second major driver of earnings volatility was currency movement, particularly the reversal of gains booked during the significant Naira devaluation in 2024 relative to the US Dollar, adding: “Therefore, you have to book revaluation gains in 2024, but also revaluation losses as the currency strengthens against the U.S.”
While reporting a net unrealised foreign exchange loss of N322.4 billion in 2025, compared with a gain of N859.4 billion in the prior year, Umar-Sadiq said the 2024 results were further boosted by N618.3 billion in fair value gains on FX-linked securities, which did not recur in 2025.
He explained that these movements are largely accounting-driven and “are all paper gains that you need to strip out to get to a core number that represents what your profits are.”
On the first-quarter weakness being referred to by some financial experts, the NSIA boss insisted that the development does not reflect the full-year position, saying: “Just to be clear, the first quarter of 2025 that was impacted by the announcement of tariffs has since reversed,” he said. “That is why you can see, on an annual basis for 2025, the quality of numbers.”
He said apart from achieving financial targets, the Authority progressed in its twin goals of securing returns and advancing economic growth within key sectors such as the healthcare with an expanded MedServe platform aimed at consolidating diagnostic and cancer centres while progressing construction of additional facilities to improve early detection and specialised care.
Additionally, the Authority also secured $24.3 million in concessional financing from the World Bank’s International Development Association (IDA) and International Finance Corporation (IFC) to scale oncology, diagnostic and cardiac services nationwide.
Also, the energy sector saw the NSIA deepening investments through its renewable energy platform, supporting projects designed to improve energy access and efficiency. Among the key initiatives are a $9 million embedded gas-fired power project in Victoria Island and a 400MW solar PV module assembly plant in Ogun State
Umar-Sadiq said these projects aim to reduce diesel reliance, lower operating costs, and support Nigeria’s renewable energy transition, with future plans for expansion across the country and Africa
He said to drive entrepreneurship and innovation within the economy, the Authority unveiled a $50 million impact-focused fund targeted at startups in critical sectors (agriculture, education, energy, water, and health). With $20 million from NSIA, $14 million from the Japanese government, and an anticipated $16 million from development partners, this initiative aims to mobilize capital for high-growth sectors
In addition, the authority strengthened financial market infrastructure through strategic investments, including commitments to expand credit access for small and medium-sized enterprises via guarantee structures designed to reduce lending risks.
Assuring that the Authority is committed to navigating market volatility and securing long-term returns, Umar-Sadiq said mitigating these risks is a daily priority, because it would certainly allow NSIA to deliver consistent positive financial performance regardless of macro or micro-economic conditions
Further amplifying it support for government-backed housing initiatives with a N15 billion loan, he said the intervention seeks to increase access to affordable homes, just as the Authority has not relented in completing the transition of the Presidential Fertiliser Initiative (PFI) to a more market-driven model to encourage private sector participation.
It is also on record that since 2016, PFI has expanded blending plants from 4 to over 80 nationwide and delivered more than 128 million bags of fertiliser to farmers with the ongoing transition meant to ensure greater sustainabilíty and private sector participation.
