Nigeria’s sovereign wealth fund, managed by the Nigeria Sovereign Investment Authority (NSIA), has grown to a total asset value of around N4.42 trillion, or roughly $2.95 billion in 2024.
This includes an extra contribution of N247 billion made by the federal government during the year, according to the NSIA’s recently released annual financial statement.
While many sovereign wealth funds around the world lean heavily into long-term investment strategies, Nigeria’s approach stands out for its relatively cautious, diversified structure.
The NSIA allocates a significant chunk of its portfolio to short-term, low-risk options, while still making bold moves into private equity, hedge funds, and global capital markets.
From cash reserves to capital markets, Nigeria’s sovereign wealth fund has spread its investments across several areas.
The fund currently holds around N922.7 billion in cash, N3 trillion in investment securities, and N118.6 billion in equity holdings in different companies and sectors.
The NSIA generated N1.85 trillion in investment income for the 2024 fiscal year alone.
That performance is largely driven by its wide spread across local and international assets.
Money market placements made up N500.6 billion of the fund’s holdings as of December 2024, nearly double the N261.4 billion recorded at the end of 2023.
Only about N63.6 billion of that was invested in Nigerian money market instruments, while a larger N436.9 billion went into international placements, providing short-term and relatively safe returns.
Bank cash holdings rose as well, with NSIA keeping N422.4 billion in various banks.
The bulk of that N411.4 billion is held in Nigerian banks. An additional N921.5 million (roughly $614,000) sits in US banks, with the remaining N9.99 billion spread across other foreign institutions.
Nigeria’s Eurobond investments also expanded significantly, growing from N103 billion in 2023 to N222.5 billion by the end of 2024.
Fixed deposits surged as well, from just N54 billion in 2023 to N418.9 billion a year later, held mainly across Nigerian banks.
The NSIA’s portfolio includes N719.8 billion worth of collateralised securities such as Central Bank of Nigeria OMO Bills and derivatives.
This move reflects the fund’s unusual but strategic preference for keeping a portion of its portfolio highly liquid and diversified.
Private equity continues to be a strong focus. The NSIA holds N549.5 billion in private equity across 38 different funds.
This marks a jump from N304.1 billion in 2023, with the fund channeling an additional N81.4 billion into the sector during the year.
These funds are managed under its Future Generations Fund (FGF), which includes holdings in both Nigerian and global private equity platforms.
Among the names in NSIA’s private equity basket are Z Capital Funds II and III, Xenon Private Equity VI, Verod Growth Funds, CardinalStone Capital, and Ingressive Capital.
There are also stakes in the Nigeria Infrastructure Debt Fund, Fund for Agricultural Finance in Nigeria (FAFIN), and Uhuru Growth Fund I. In total, the authority still has $75.7 million in unfunded capital commitments to private equity and venture capital managers worldwide.
Beyond private equity, the fund holds N807.8 billion in hedge funds and long-only equity positions, also under the FGF.
Hedge fund managers include prominent global names such as Morgan Stanley, Goldman Sachs, and Canyon Value Realisation Fund.
For its long-only stock holdings, the NSIA partners with firms such as Fundsmith LLP, Artisan Partners, and Marathon Asset Management.
In addition, the fund has invested in more traditional fixed income instruments like treasury bills, commercial papers, and FGN bonds, with a total of N80.6 billion in this category.
It holds N63.6 billion in treasury bills, N14.5 billion in commercial papers, and N2.5 billion in Nigerian government bonds.
Direct equity investments are worth N132.1 billion and span various sectors.
These include a N2.8 billion stake in MTN Nigeria, N884.5 million in NG Clearing Limited, and a N9.6 billion investment in data center firm Kasi Clouds Limited.
The NSIA also holds shares in companies like Legit Car Africa, Extension Africa, and InfraCorp Nigeria. It owns 20.9% of the Nigeria Mortgage Refinance Company (worth N5.7 billion), 30.37% of InfraCredit (N56.6 billion), and 49% of Family Homes Funds (N5.1 billion).
Notably, it holds 40.5% of Metrowaves Sports and Infrastructures Ltd—the developer behind the X-Arena indoor sports center in Lagos.
US treasury notes are also part of the mix, with the NSIA increasing its holdings to N124.4 billion (about $82 million), up from N38.4 billion a year earlier.
An additional N75 billion has been invested in other fixed-income products in the US market.
The NSIA’s strategy is clear: diversify investments, generate stable returns, and balance safety with global exposure.
With this blend of low-risk placements and ambitious equity strategies, the fund continues to serve as a crucial financial cushion and long-term growth engine for Nigeria.
