Market News

BY David Olujinmi 

Nigeria’s sovereign wealth fund, managed by the Nigeria Sovereign Investment Authority (NSIA), currently holds assets valued at approximately N4.42 trillion ($2.95 billion). In 2024, the federation boosted the fund with an additional N247 billion contribution.

According to NSIA’s 2024 annual financial statement, a breakdown of its asset base—analysed by BusinessDay—shows the fund comprises approximately N922.7 billion in cash reserves, N3 trillion in investment securities, and N118.6 billion in equity holdings across various companies.

A closer review reveals that, unlike many sovereign wealth funds that focus solely on long-term strategies, the NSIA allocates a significant portion of its portfolio to short-term, low-risk investments. It also maintains notable exposure to private equity, venture capital, and hedge funds across global markets.

For FY 2024, its investments in different capital market instruments worldwide yielded an investment income of N1.85 trillion.

Money market placements – N500.6 billion

Part of the NSIA’s cash reserves is tied up in N500.6 billion worth of money market placements as of the end of 2024. This figure represents a 91.5 percent increase from the N261.4 billion recorded at the close of 2023.

Of this, N63.6 billion is invested in Nigerian money market instruments, while the balance—N436.9 billion—is placed in foreign markets. These placements are short-term, low-risk investments that banks and asset managers use to generate stable returns on surplus cash.

Bank cash – N422.4 billion

NSIA has a bank balance of about N422.4 billion, up from N287 billion as of end of FY 2023. N411.4 billion of this amount is domiciled in Nigeria, while N921.5 million (about $614,000) is kept in US banks. The remaining N9.99 billion is kept in other foreign banks.

Eurobonds – N222.5 billion

The NSIA has significantly increased its holdings in Nigerian Eurobonds, which now stand at N222.5 billion, representing a sizeable share of its N3 trillion investment securities portfolio. This marks a notable increase from N103 billion in 2023, reflecting a further N119.5 billion invested in 2024.

Fixed deposits – N418.9 billion

NSIA also domiciled about N418.9 billion of its assets in fixed deposits accounts across Nigerian banks. Its fixed deposit balance surged from N54 billion as of FYE 2023.

Collateralised securities – N719.8 billion

NSIA invests heavily in collateralised securities, as it holds about N719.8 billion worth of collateralised securities. These securities are mainly CBN OMO Bills and derivatives. While this investment strategy is unconventional for a sovereign wealth fund, it aligns with NSIA’s goal of maintaining a diversified and liquid portfolio.

Private equity funds – N549.5 billion

The NSIA holds about N549.5 billion across a diverse range of private equity (PE) funds, up from N304.1 billion in 2023, reflecting an additional N81.4 billion invested during the year.

These investments are made through the Future Generations Fund (FGF), which is currently deployed across 38 private equity funds, including the Nigeria Infrastructure Debt Fund and the Fund for Agricultural Finance in Nigeria (FAFIN).

NSIA’s PE portfolio includes stakes in funds such as Z Capital Fund II & III, Xenon Private Equity VI, Ingressive Capital, Verod Growth Fund II & III, CardinalStone Capital, CardinalStone Legacy Funds, and Uhuru Growth Fund I, among others.

The authority also has $75.7 million in unfunded capital commitments to various PE and venture capital managers globally.

Hedge funds and long-only equity – N807.8 billion

In addition to private equity, NSIA has invested N807.8 billion in hedge funds and long-only equity strategies, also through the FGF.

The hedge fund portfolio includes global names like Morgan Stanley, Goldman Sachs, John Street Systematic Limited, Sachem Head Capital Management, Naya Fund, and Canyon Value Realisation Fund.

For its long-only equity positions—where the fund simply buys and holds stocks—it works with investment managers such as Cervian Capital II, Marathon Asset Management, Fundsmith LLP, Artisan Partners, Bluebox Asset Management, Prince Street Capital, Edgbaston, EFG International, and RWC Asset Advisors US.

Treasury bills, FGN Bonds, and commercial papers – N80.6 billion

NSIA also invests in treasury bills and commercial papers. It has about N14.5 billion worth of commercial paper investments, N63.6 billion worth of Nigerian treasury bills, and N2.5 billion worth of FGN Bonds as of FYE 2024.

Equities – N132.1 billion

Beyond private equity, the NSIA has direct equity holdings worth N132.1 billion across multiple sectors. These include:

N2.8 billion stake in MTN Nigeria

N884.5 million in NG Clearing Limited

N9.6 billion in Kasi Clouds Limited (a data center firm)

Equity positions in Legit Car Africa, Extension Africa, and InfraCorp Nigeria

A 20.9 percent stake in Nigeria Mortgage Refinance Company (N5.7 billion)

30.37 percent stake in InfraCredit (N56.6 billion)

49 percent stake in Family Homes Funds (N5.1 billion)

40.5 percent stake in Metrowaves Sports and Infrastructures Limited, the developer of the 12,000-seat X-Arena indoor arena in Lagos.

 Treasuries – N124.4 billion

NSIA holds about N124.4 billion (about $82 million) worth of U.S. Treasury notes. It represents an increase from N38.4 billion as of FYE 2023.

Fixed Income products – N75 billion

NSIA holds about N75 billion worth of fixed income products in the United States.