Business Briefings
NSIA profit crashes 91% to $107m as FX windfall fades
By: Amarachi Okonkwo
The Nigeria Sovereign Investment Authority (NSIA) posted a steep decline in profitability for the 2025 fiscal year, as the extraordinary foreign exchange gains that drove its record performance in 2024 failed to recur.
According to its 2025 Special Purpose US Dollar Consolidated and Separate Financial Statements, profit after tax plunged by 91 per cent to $107m, down sharply from $1.24bn reported in the previous year.
The dramatic contraction underscores the transient nature of the prior year’s earnings surge, which was largely driven by currency-related gains following the sharp devaluation of the naira. In 2024, the Authority recorded a $566.9m foreign exchange gain as the weaker domestic currency boosted the valuation of its US dollar-denominated assets. However, with relative stabilisation in the foreign exchange market in 2025, these non-core gains significantly moderated.
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A key pressure point was the performance of foreign exchange-linked collateralised securities, which recorded a $405m negative swing year-on-year. These instruments, highly sensitive to naira-dollar movements, generated $407.9m in gains in 2024 but delivered just $3.1m in 2025, reflecting the absence of similar currency volatility.
The report also highlighted broader weaknesses across parts of the Authority’s diversified portfolio. Share of profit from equity-method investments reversed from a $28.4m gain in 2024 to a $7.2m loss in 2025, indicating softer returns from strategic holdings. In addition, agriculture infrastructure previously a notable revenue contributor recorded no operating income in 2025, compared to $76.42m in the prior year.
Despite these headwinds, the NSIA’s core operating performance remained relatively resilient. Interest income rose to $197.3m from $177.8m in 2024, supported by higher yields and asset growth, while core operating income increased by six per cent to $349.07m. This suggests that the Authority’s underlying investment strategy continues to generate stable returns independent of currency-driven windfalls.
On the balance sheet side, the Authority strengthened its financial position, with total assets expanding to $3.42bn from $2.88bn in 2024. The growth was largely underpinned by increased government contributions, which climbed to $2.06bn during the year.
Retained earnings also remained robust at $5.0bn, reinforcing the NSIA’s long-term mandate of preserving and growing Nigeria’s sovereign wealth derived from excess crude oil revenues.
Overall, the 2025 performance reflects a transition from windfall-driven profitability to a more normalized earnings profile. While the sharp drop in headline profit highlights the impact of reduced foreign exchange gains, the steady growth in core income and asset base points to underlying operational stability as the Authority navigates a less volatile macroeconomic environment.
