The Nigeria Sovereign Investment Authority (NSIA) reported a 91% drop in 2025 profit, down to N161.1 billion from N1.89 trillion in 2024. The decline was driven by non-core losses from foreign exchange revaluation and temporary shocks linked to U.S. tariff announcements. Total operating income fell to N207.6 billion, while non-core income swung to a loss of N317.7 billion, compared to a gain of N1.48 trillion the previous year. Managing Director Aminu Umar-Sadiq attributed the drop to external factors, noting that global markets quickly recovered after initial volatility. Currency movements also played a major role, with the NSIA recording a net unrealised FX loss of N322.4 billion in 2025, reversing N859.4 billion in gains from 2024. Fair value gains on FX-linked securities worth N618.3 billion in 2024 did not recur.
Stripping out accounting effects, the fund's core performance improved. Core operating income rose to N525.3 billion from N498 billion in 2024, supported by a 138% increase in externally managed portfolios. Core total comprehensive income reached N478.8 billion, up 17.4% year-on-year and the highest in the fund's history. Since inception, NSIA has grown its net asset value from $1 billion to $3.4 billion, with total contributions of $2.06 billion and a compound annual growth rate of 10.7%. The fund advanced its development mandate, securing $24.3 million from the World Bank's IDA and IFC for healthcare expansion. It also launched a $50 million impact fund, with $20 million from NSIA and $14 million from Japan, to support startups. The cost-to-income ratio rose slightly to 4.2% despite increased investments in key sectors.
A 91% profit drop looks catastrophic until you realise it's largely paper losses from currency swings and fleeting global shocks. Aminu Umar-Sadiq's explanation reveals that NSIA's real performance not only held up but improved, with core income rising and development projects expanding. For Nigerians, this means the fund is weathering global turbulence without dipping into its long-term value-building role. The real story isn't the profit fall—it's that the system worked as designed.
