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NSIA announces N57bn earned income, reveals 2019 outlook

Nigeria Sovereign Investment Authority (NSIA) has declared N57.73bn as total income earned in 2018.

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NSIA announces N57billion earned income, reveals 2019 outlook

Nigeria Sovereign Investment Authority (NSIA), has declared N57.73 billion as total income earned in 2018. According to the official report on its website, the total income generated by the corporation in the year 2018 grew by 88.5%.

Specifically, the NSIA report shows that in the year 2017, total income was N30.62 billion, while 2018 income increased to N57.73 billion. Also, the sum of N23.82 billion was recorded as interest income, as against N21.77 billion in 2017. This indicates that interest income earned increased by 9% year-on-year.

Following increase in interest generated, the corporation stressed that such rise in interest returns underscores its commitment to generate fixed income returns from low-risk securities that generate predictable interest, and steady returns including Eurobonds, Treasury bills and other secured deposits.

Robust growth despite challenges: NSIA stated that despite several growths-inhibiting challenges, robust growth was recorded with a favourable trajectory across the three funds (i.e The Stabilisation Fund, Future Generations Fund and Nigeria Infrastructure Fund).

NSIA disclosed that the corporation was faced with concerns over international trade flows, slow growth in key economic indicators, and increased volatility across financial markets during the period under review. According to NSIA:

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“Equity market experienced a dramatic decline in the last quarter of 2018 as Investors were burdened with rising US central bank interest rates, lower than expected growth in Asian market particularly China and other political issues including Brexit, Eurozone and the China-US trade conflict, characteristically fueled Investor apathy for most of the year.”

Total Assets hit N617.70bn:  NSIA further highlighted that total assets recorded a growth of 16% to N617.70 billion at year-end compared to N533.88 billion in the corresponding period.

Similarly, the total comprehensive income (including the impact of foreign exchange gains) of N44.34 billion as against N27.93 billion in 2017. However, the total comprehensive income (excluding the impact of foreign exchange gains) of N26.29 billion up from N26.28 billion in 2017.

[Real Also: IMF ranks Nigeria’s sovereign wealth fund second-worst in the world]

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Breakdown of management of NSIA assets:

  • NSIA core capital- US$1.5 billion
  • PIDF – US$650 million
  • Debt Management Office – US$122.60 million
  • Nigeria Stabilisation Fund amounted to ₦13.64 billion
  • Gross sum of US$417.46 million (US$350 million principal plus returns) repaid to the Nigeria Bulk Electricity Trading Company Plc (“NBET”) following the expiration of the 4-year investment term.

Positive Outlook for 2019: Despite high volatility that the global market witnessed in 2018, NSIA expressed optimism to a relatively stable business terrain. Also, the corporation stressed that there are no apparent expectations of recession risks in 2019. However, the Authority continues to monitor the market conditions with the view to leverage the upside risks that avail themselves in the market.

“We expect that our strategy will continue to deliver positive returns.”

Also, NSIA reiterated that the deployment of the Presidential Infrastructure Development Fund will play a key role in its infrastructure investment strategy for the year. While healthcare remains a focus area going forward with the implementation of the next
the phase of diagnostic and treatment centres, the corporation identified Gas industrialisation as an area of focus.

About NSIA: The Nigeria Sovereign Investment Authority, a corporate body established by the Nigeria Sovereign Investment Authority (Establishment, etc.) Act 2011, is mandated to manage funds in excess of budgeted hydrocarbon revenues. NSIA operates three mandate funds: the Stabilisation Fund, the Future Generations Fund and the Nigeria Infrastructure Fund.

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Coronavirus

BREAKING: Lagos launches N5 billion support fund for 2,000 low-cost private schools

The Governor said the facility will benefit low-cost schools with amounts ranging from N500,000 to N5 million.

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Lagos State government has launched a N5billion support fund to help reduce the impact of Coronavirus pandemic on low-cost private schools in the state.

This was disclosed by the Governor of the state, Babajide Sanwo-Olu via his Twitter handle on Friday.

According to him, the educational sector is one of those severely impacted by the pandemic, with schools and vocational learning-centres shut since March.

He said, “With access to funding for privately owned schools and vocational training centres in the state, we are confident that this programme, under the partnership between First Bank Nigeria and Lagos State Education Trust Fund (LSETF) will help accelerate a sustainable return to learning and skills acquisition.”

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He explained that the facility will benefit 2,000 low-cost schools with amounts ranging from N500,000 to N5 million.

“As a responsible Government, we are obligated to provide interventions that would enable learners in schools study in line with the new normal,” the Governor Sanwo-Olu added.

The Chief Executive Officer, First Bank Nigeria, Dr Adesola Adeduntan, said “With this partnership, we are sure that registered educational institutions in Lagos State will have access to funds at subsidised interest rates to meet their needs as they reopen at this auspicious time.”

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Business News

Paga Group relocates to the UK

Oviosu announced that he is very excited about moving to and working with the UK government.

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Paga records over $2 billion worth of transactions in 2019 , Paga acquires Ethiopian-based startup, Apposit, announces Paga subsidiaries

Paga Group has redomiciled from Mauritius to the United Kingdom (UK). The group is the holding company for its operations in Nigeria, México, Ethiopia, and the UK.

This was disclosed by the Chief Executive Officer and founder, Paga, Tayo Oviosu on Friday.

Why it matters: The company took the decision due to bureaucratic challenges it faced last year.

He said, “The laws and courts of Mauritius are not very fast-moving, and the rules are difficult. I’ve had one court case that was eventually thrown out after a year.

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“In the UK it would have been thrown out immediately, and the person would have had to pay us for our lawyer fees.

“Basically, not an easy place to do business. It is more painful than useful. I say stick to good ol’ America or UK or Netherlands or Luxemburg. Where you know there are professionals, and the legal system works.”

Oviosu said he is very excited about the move, looks forward to working with the UK government to promote trade with the UK.

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The Paga Group has raised $34.7 million in funding so far, according to Crunchbase.

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Appointments

Stanbic IBTC Holdings Plc appoints Sola David-Borha as Non-Executive Director

Sola David-Borha has been appointed as a non-Executive Director to the board of Stanbic IBTC Holdings Plc.

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Stanbic IBTC Holdings Plc appoints Mrs Sola David-Borha as non-Executive Director

Stanbic IBTC Holdings Plc has announced the appointment of Mrs Sola David-Borha to its board as a Non-Executive Director, subject to the receipt of all required regulatory approvals.

In a statement issued by the company, signed by the company’s secretary Mr. Chidi Okezie and sent to the Nigerian Stock Exchange, stated that “Mrs. David- Borha is currently the Chief Executive, Standard Bank (Africa Regions). Prior to that, she served as Chief Executive of Stanbic IBTC Holdings PLC (2012-2017) as well as the Bank (2011-2012), after holding various executive positions in Corporate Banking; Corporate & Investment Banking; and Investment Banking Coverage for Africa (excluding South Africa). She is also an Independent Non-Executive Director on the Board of CocaCola Hellenic Bottling Company.”

She has a vast experience in the financial world and an astute board leader with a keen corporate governance. Sola has led and sat on various boards including being the former Vice Chairman for the Nigerian Economic Summit Group, subsidiaries of the Stanbic IBTC and Standard Bank Groups, Coca-Cola HBG A, and many others. She is also vastly educated having obtained MBA from the prestigious Manchester Business School and Bsc in Economics from the University of Ibadan. She is also an honorary fellow of the Chartered Institute of Bankers of Nigeria (CIBN).

Recall that Stanbic IBTC had earlier declared a Profit After Tax (PAT) of N45.2 billion for H1, 2020. Its gross earnings also increased by 7.8% to N126.57 billion with a basic earnings per share of 419 kobo and a proposed interim dividend payment of 40 kobo per share.

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