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NSIA records 343% growth in income

by Business News Report

The Nigerian Sovereign Investment Authority (NSIA) has recorded a 343% growth in Total Comprehensive Income totalling N160.06 billion in 2020 compared to N36.15 billion in the previous year and 33% growth in Net Assets, rising up to N772.75 billion from the previous N579.54 billion. This was one of the major highlights in the NSIA report presented at today’s National Economic Council (NEC) chaired by Vice President Yemi Osinbajo, SAN. At today’s meeting of the Council, which comprises the 36 State Governors, the Federal Capital Territory Minister and the Governor of the Central Bank of Nigeria (GBN), besides other Federal Government officials, a session was devoted to holding the AGM of the NSIA where reports and financial statements, including the audit were presented.

In particular, the Managing Director/Chief Executive Officer of the NSIA, Mr. Uche Orji, submitted that the NSIA achieved core income of N109 billion compared to N33.07 billion in 2019, excluding forex gains of N51 billion in 2020 and N1.29 billion in 2019. The NSIA presentation noted that despite the challenges of COVID-19, it had a favourable year owing to strong performance from its investments in international capital markets, improved contribution from associates, as well as exchange rate gains from foreign currency positions. In response to COVID-19, the NSIA partnered with Global Citizen, a not-for profit group, to form the Nigeria Solidarity Support Fund (NSSF), acquired and distributed oxygen concentrators to 21 teaching hospitals as part of its Corporate Social Responsibility; in addition to staffing support to the Presidential Taskforce on COVID-19 towards combatting the pandemic.

Other major milestones reached by the NSIA were recorded across domestic infrastructure projects, specifically in roads, agriculture, healthcare, technology and gas industrialisation. NEC also received a presentation on the Digital Switch Over (DSO) by the Minister of Information and Culture, Alhaji Lai Mohammed. He stated that it was the International Telecommunications Union, ITU, that decided on member states switching off analogue television transmission to ‘go digital’. The DSO will be taking off first in Lagos, Kano and Rivers States, he stated.

 According to him, the National Broadcasting Commission (NBC) and the DSO Ministerial Task Force are tasked with ensuring that Nigeria ‘digitizes’ and develop a public information and awareness campaign to inform citizens about DSO/FreeTV. The Minister disclosed that the switch-over has a revenue generation potential of N20 billion annually; and that the funds will enable the NBC support and upgrade DSO initiative, as well as fund local producers. Minister of State for Budget and National Planning, Mr. Clem Agba, gave the Council the monthly update on the under-listed accounts as follows:

EXCESS CRUDE ACCOUNT (ECA) Balance as at 18th May 2021 stands at $72,413,574.70; STABILIZATION ACCOUNT Balance as at 18th May, 2021 stands at N24,741,213,941.88; DEVELOPMENT OF NATURAL RESOURCES ACCOUNT Balance as at 20th May, 2021 stands at N23,650,579,140.23. On the Budget Support Facility, State Governors restated their request to defer the repayment of the loans, which was to have started this month. Ekiti State Governor, Dr. Kayode Fayemi, who is also Chairman, Nigeria Governors’ Forum, reported interactions with the Finance Minister and the CBN Governor regarding the matter. The CBN Governor, Godwin Emefiele, also emphasised the importance of the timely repayment of loans, especially those owed to commercial banks, indicating the challenges inherent in a further delay in payment, including audit concerns. He said the repayment of the commercial loans should resume this month.  In addition, the Vice President stated that he will be holding a meeting with representatives of the State Governors, the Finance Minister and the CBN Governor to resolve the issue raised.

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