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By Godswill Michael
The Nigeria Sovereign Investment Authority (NSIA), grew its total assets to ₦4.91 trillion in 2025, even as it recorded a ₦322.4 billion unrealised foreign exchange (FX) loss, highlighting the continued impact of currency volatility on its earnings.
The Authority disclosed this in its 2025 financial performance report releasd recently, which showed that total assets rose by 10.9 per cent year-on-year from ₦4.42 trillion in 2024 to ₦4.91 trillion ($3.42 billion) in 2025, supported by ₦360.8 billion in fresh capital contributions and ₦478.8 billion in core earnings.
Despite the strong asset growth, FX movements weighed on overall performance. The report stated: “Following a 6.5% Naira appreciation against the US Dollar in 2025 (versus a 71% devaluation in 2024), the Group recorded a net unrealised FX loss of ₦322.4 billion, compared with an unrealised gain of ₦859.4 billion in the prior year.”
It noted that “the prior year’s non-core income included ₦618.3 billion in fair value gains from FX-linked collateralised securities, which did not recur in 2025.”
Notwithstanding FX-related pressures, NSIA’s underlying operations remained resilient. Core Total Comprehensive Income (TCI), which excludes FX volatility, rose by 17.4 per cent to ₦478.8 billion in 2025 from ₦408.0 billion in 2024, the highest since inception.
Core operating income also increased to ₦525.3 billion ($349.1 million), up from ₦498.0 billion ($328.5 million) in the previous year, driven largely by a 138 per cent surge in externally managed investment portfolios and improved returns across developed and emerging markets.
The Authority said: “Core TCI increased by 17.4% year-on-year, reflecting robust performance across core operations and marking the highest Core TCI recorded since inception.”
Profitability metrics improved as well, with Return on Equity (ROE) rising to 10.3 per cent from 7.2 per cent, while Return on Assets (ROA) climbed to 9.9 per cent from 7.1 per cent.
NSIA’s Net Asset Value (NAV) rose significantly by 19.8 per cent to $3.4 billion (about ₦4.88 trillion) in 2025, up from $2.8 billion in 2024. The growth was supported by $241.2 million in capital injections and $320.2 million in net earnings.
Since inception, the fund has grown its NAV from an initial $1 billion seed capital to $3.4 billion, representing a compound annual growth rate (CAGR) of 10.7 per cent over 13 consecutive years of earnings expansion.
Costs edge higher amid expansion
Operating efficiency remained strong, although costs edged up slightly. The cost-to-income ratio increased to 4.2 per cent in 2025 from 3.6 per cent in 2024, driven by inflationary pressures and strategic investments in key portfolio companies, including healthcare platform Medserve and renewable energy arm RIPLE.
The report explained that: “the Cost-to-Income Ratio (CIR) remained below 5%, rising modestly from 3.6% in 2024 to 4.2% in 2025.”
The Authority also highlighted structural changes affecting revenue streams. It confirmed the transition of the Presidential Fertiliser Initiative (PFI) to the Ministry of Finance Incorporated, noting that the move impacted agriculture-related infrastructure revenues but aligned with long-term sustainability goals.
Beyond financials, NSIA expanded its footprint across critical sectors in 2025. These include a $50 million NSIA–JICA innovation fund, a $24.3 million healthcare expansion facility, and renewable energy investments such as a 30MW embedded power project in Victoria Island and a 400MW solar module assembly plant in Ogun State.
NSIA said its diversified, multi-currency portfolio remains central to mitigating macroeconomic risks, even as currency swings continue to influence reported earnings.
The Authority maintained that its focus on core income growth, disciplined asset allocation, and long-term investments will sustain performance, despite volatility in global and domestic markets.