NSIA records N15bn income in 2014 – Orji

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Abuja-   Mr Uche Orji, The Managing Director, Sovereign Investment Authority (NSIA), said the fund recorded a net comprehensive income of N15.8 billion in 2014, up from N505 million in December 2013.

Orji announced this while addressing newsmen Authorities Financial Year report Monday in Abuja.

“Total revenue during the period stood at N7.2 billion, up from N1.96 billion.

“Change in 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 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 Mortgage Refinancing Company were consolidated in the authority’s book.

He said the prevailing exchange rate at the end of the financial year was N167.5 to a dollar.

strong financial performance during the period in came primarily from investments in interests in 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 , weak demand, rapidly declining oil prices and a turbulent local operating environment.

Orji said in the year under , the NSIA ranking under the Sovereign Wealth Fund Institute Transparency Index (SWFI) was upgraded to nine points out of 10 from the previous forth .

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This new rating, he said, translated to a leap from global joint 33 to global joint second , out  of 51 Sovereign Wealth 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 , adding that the major focus would be 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 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 (NAN)