The Nigeria Sovereign Investment Authority (NSIA), manager of Nigeria’s Sovereign Wealth Fund (SWF), has reported a sharp 91.3 per cent decline in annual profit for 2025, following a reversal of the massive foreign exchange (FX) gains that boosted its earnings in 2024.
According to its 2025 audited financial statements, profit for the year fell to $107 million from $1.24 billion recorded in 2024. The steep drop was largely attributed to FX-related losses and the near disappearance of fair value gains on FX-linked securities.
The financial report shows that the dramatic swing in profitability was driven mainly by two non-core items — direct FX gains/losses and fair value gains on FX-linked securities.
In 2024, the NSIA benefited from significant naira devaluation, which inflated the value of its dollar-denominated assets, resulting in a net FX gain of $566.8 million. However, in 2025, as the naira stabilised and some FX-linked collateral matured, the gains reversed into a net FX loss of $214.2 million — a negative swing of 137.8 per cent.
Similarly, fair value gains on FX-linked securities collapsed from $407.85 million in 2024 to just $3.11 million in 2025, representing a 99.2 per cent decline.
As a result, total operating income dropped from $1.30 billion in 2024 to $137.9 million in 2025, an 89.4 percent decrease.
Despite the headline decline, the fund’s core operating income rose by 6.2 per cent, increasing from $328 million in 2024 to $349 million in 2025.
This steady growth suggests that the NSIA’s underlying portfolio — spanning global and domestic investments across its three core funds: the Stabilization Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund — continues to generate positive returns despite global macroeconomic volatility.
Analysts describe the 2025 performance as a “normalisation” of earnings following an exceptional FX-driven surge the previous year.
While revenues contracted, the cost of managing the authority increased significantly.
Operating and administrative expenses rose by 43 per cent to $17.29 million in 2025, compared to $12.06 million in 2024.
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Personnel expenses were a major driver, surging by 48.6 per cent to $5.338 million (₦7.74 billion) from $3.59 million (₦5.38 billion) the previous year.
General and administrative expenses also climbed 60.5 per cent to $3.95 million. These costs include healthcare administration, vehicle maintenance, business meetings, licensing fees, security, fuel and diesel, as well as risk and corporate governance-related expenses.
The report further revealed a $7.19 million loss from investments accounted for using the equity method, indicating underperformance in some joint-venture infrastructure or healthcare projects.
Market observers note that while the 2025 figures appear stark compared to the previous year’s record-breaking profit, the decline largely reflects the fading of extraordinary FX windfalls rather than a structural weakness in the fund’s core investment strategy.
With core operating income still on an upward trajectory, attention is expected to shift toward how effectively the NSIA manages costs, navigates currency risks, and strengthens returns across its strategic investment rings in the coming years.