The Nigeria Sovereign Investment Authority (NSIA), managers of the country’s Sovereign Wealth Fund (SWF) reported a 1,057% increase in profit for the year 2023 to N1.184 trillion, according to data from its audited financial statement for the period, seen by MoneyCentral.
Profit was boosted by fair value gain on financial assets of N544.2 billion in 2023, as well as net foreign exchange (FX) gain that rose by 1,114% to N537.2 billion in the period.
Total assets of the NSIA at the end of 2023, jumped to N2.258 trillion, led by investment securities of N1.349 trillion and cash and cash equivalents of N547 billion.
Meanwhile, the NSIA received additional contribution of $96.41 million (N130.82 billion) from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in 2024 (after the reporting period) based on the implementation of the Petroleum Industry Act (PIA) of 2021.
The Petroleum Industry Act (PIA) 2021 is a landmark piece of legislation signed into law by President Muhammadu Buhari in August of 2021, representing a significant overhaul of Nigeria’s oil and gas sector. The PIA introduces a new royalty and tax regime for upstream (exploration and production) and downstream (refining and distribution) activities which aims to ensure government revenue is maximized while maintaining competitiveness for investors.
PIA also establishes a royalty payable based on price ranging from 0% – 10% for crude oil and condensates (“Royalty by Price”) which underscores the new source of capital inflow for the Authority.
The was in addition to additional contribution of $45million (N20.98 billion) the Authority received from the Government during the 2023 financial year.
Analysts expect more capital will flow to the NSIA as more crude oil contracts are migrated to the PIA regime, and more oil exporting companies fully adopt the PIA.
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