As Profit Collapses, NSIA Faces Ballooning Staff Costs, Pushing Operating Expenses Up 76%

Nigeria’s Sovereign Wealth Fund (SWF) managed by the Nigeria Sovereign Investment Authority (NSIA) saw a 76% jump in other operating expenses in the first quarter (Q1) of 2025, led by salaries and allowances.

This came amid a 97% collapse in profit in the Q1, 2025 period.

Other Operating expenses rose to N4.57 billion in March 2025 from N2.58 billion in the 2024 period as personnel expenses surged by 38.5% to hit N1.390 billion.

Salaries and allowances, a component under personnel expenses rose by 39% to N1.32 billion.

General expenses which include healthcare administrative cost, motor vehicle repairs and maintenance cost, business meetings, licensing cost, security cost, fuel and diesel cost, surged by 190% to N728 million from N250.74 million in one quarter.

Other major expense lines include professional and consultancy cost N801.6 million up 66.7% year-n-year (YOY), travel expenses of N417.11 million up 83.8%, office maintenance costs of N430 million up 59%, training and insurance expense of N283.9 million up 127%, IT subscriptions of N108 million up 90% and oncology training costs of N143.76 million (a new expense line).

NSIA profit slumps

The Nigeria Sovereign Investment Authority (NSIA) recorded a 97% plunge in profit in the first quarter (Q1) of 2025 largely due to losses incurred from its hedge fund and trading strategy as well as non-recurring foreign exchange (FX) gains, compared to a year-ago.

Profit for the NSIA fell to N30.58 billion ($20 million) in Q1, 2025, compared to N1.185 trillion ($790 million) in Q1, 2024.

NSIA reported fair value loss on financial assets of N43.93 billion in Q1, 2025, compared to gains of N573.8 billion in Q1, 2024.

The losses were comprised of Unrealized fair value (loss) on collateralised securities of N21.69 billion, realized fair value (loss) on collateralised securities (net of derivative cost) of N10.7 billion and an N11.56 billion loss from fair value changes on private equity, hedge funds and other securities.

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