NSIA retains best transparent African Sovereign Wealth firms’ rating

The Nigerian Sovereign Investment Authority (NSIA) has retained its strong position in the latest first quarter 2016 Linaburg-Maduell Transparency Index concluded by the Sovereign Wealth Fund Institute (SWFI).

The Linaburg-Maduell Transparency Index, the internationally-renowned analyst of sovereign wealth funds, was developed at the Sovereign Wealth Fund Institute in 2008 by Carl Linaburg and Michael Maduell. It is an internationally-recognised method of rating the transparency of sovereign wealth funds around the world. For the second consecutive year, the Nigerian Sovereign Wealth Fund (SWF) scored nine out of 10 points, earning its rank in the league of the top rated global sovereign wealth funds in terms of compliance with international best practices.

It tops the joint second category, which includes the United States (U.S.), France, South Korea, Malaysia, Brazil and the UAE.

The Institute in its report at the weekend declared that the SWF remains the most highly rated African sovereign wealth fund for the second year in a row.

The ratings are based upon various criteria, including the disclosure of the policy and purpose of the SWF, its source of capital, a clear regulatory oversight, regular independently audited yearly reports, the establishment of ethical standards and clearly outlined strategies for investment and management compensation.

Essentially, the rating underscores NSIA’s resolve to operate in accordance with the highest professional and ethical standards globally. The Authority’s adherence to the Santiago Principles and the stringent operational systems adopted to ensure that NSIA keeps pace with international standards in sovereign wealth fund management continues to serve as the basis for the Authority’s undertakings. NSIA remains committed to these principles and will continue to deliver its mandate professionally, sustainably and transparently.

The ranking shows that NSIA serves as a reference fund for transparency standards not only among African sovereign wealth funds but also across the industry at large. In three short years, NSIA has transformed from an obscure institution into a professionally-managed sovereign wealth fund.

It would be recalled that in spite of the harsh global operating climate and the slow economic growth, the SWF recently announced that it recorded growth in the Fund’s Asset to N213.674 billion as at end December last year from the level of N177.838 billion recorded the previous year. The growth represents a 20 per cent leap in total assets.

It also said the Fund’s comprehensive income for the year under review recorded a 67 per cent growth from N15.772 billion recorded in 2014 to N26.355 billion while investment income equally grew tremendously between 2014 and 2015 at different rate as follows: investment income – from N3.941 billion to N5.821 billion; net foreign exchange gain and other fees income, from N3.329 billion to N8.774 billion and share of profit from investments in associates from N16.364 million to N124.914 million.