Nigeria contributed N247 billion to sovereign wealth fund in 2024

The Nigerian Federation contributed N247 billion to the Nigeria Sovereign Investment Authority (NSIA), Nigeria’s sovereign wealth fund, in 2024. This marks an over 1,000 percent increase from the N21 billion contributed to the fund in 2023.

This contribution was partially responsible for the 96 percent growth in NSIA’s total assets to N4.42 trillion (~$3 billion).

In 2024, the NSIA grew its net income to N1.89 trillion, marking a 59 percent growth from the N1.18 trillion recorded in 2023. The fund’s financial assets yielded an operating income of N1.85 trillion, driven in part by a fair value revaluation gain of N689 billion. The NSIA’s infrastructure business generated an income of N121.8 billion and an operating income of N14.2 billion.

During the year, NSIA’s total assets under management grew by 96 percent to N4.43 trillion, from N2.26 trillion as of 2023. The group’s investment securities were the major drivers, as its holdings of investment securities grew to N3 trillion, a 123 percent growth from N1.35 trillion as of 2023.

How NSIA Made Money in 2024

NSIA spent N1 trillion purchasing Open Market Operations (OMO) and treasury bills, a significant 125 percent increase from the N446.8 billion spent in 2023. The fund received N722.7 billion as proceeds from older OMO bills and T-bills held. In 2023, this figure was N764.8 billion.

The fund’s investments yielded dividends of N5.3 billion in 2024, up from N1.1 billion in 2023. Additionally, a significant part of the fund’s cash flow came from the N247 billion contributed by the government in 2024.

The Monetary Policy Rate (MPR) hike was also a factor for NSIA as the group posted N5.2 billion in interest income on treasury bills, up from N71.6 million in 2023. NSIA’s interest income from Eurobonds also reached N23.5 billion, up from 2023’s N9.3 billion. US treasury notes generated N3 billion in interest income, while OMO bills generated N169.9 billion in interest income during the year.

NSIA received a N4.24 billion dividend from InfraCredit.

NSIA currently operates three ‘ring-fenced’ funds: the Stabilisation Fund, Future Generations Fund, and the Nigeria Infrastructure Fund. Through the Future Generations Fund, NSIA is heavily invested in venture capital and private equity firms, both within and outside Nigeria.