NSIA shifts focus to Asia and Europe, scales down U.S. exposure amid market volatility
By Kunle Sanni
The Nigerian Sovereign Investment Authority (NSIA) has announced a strategic pivot in its investment approach, increasing its focus on Asian and European markets while scaling back exposure to U.S. equities.
Aminu Umar-Sadiq, Managing Director and Chief Executive Officer of the NSIA, revealed the development in an interview with Bloomberg on Tuesday. He said the authority’s Future Generations Fund has been restructured to favour defensive and growth-oriented assets in response to rising global market volatility and fiscal uncertainties in the United States.
“At the end of last year, valuation levels were high, so we pivoted to cash,” Umar-Sadiq explained. “That allowed us to move away from alternatives into defensive assets like investment-grade corporate bonds, and we increased our exposure to Japan, Australia, and Europe within our long-only developed markets portfolio.”
He clarified that the move was driven solely by market fundamentals and had no political undertone, saying, “We had no political considerations. It was important to diversify and build a more robust portfolio even as the U.S. markets remained buoyant.”
The NSIA, which manages Nigeria’s sovereign wealth fund, operates through three ring-fenced portfolios: the Stabilisation Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund. Its activities are further supported by the Petroleum Industry Act, which provides for additional inflows when oil prices rise above $50 per barrel.
“Inflows to the fund vary with oil prices, and that influences our investment capacity,” Umar-Sadiq noted.
Looking ahead, the NSIA chief said the authority will deepen its focus on domestic and continental development, particularly in infrastructure. He emphasised the need to mobilise local capital — especially from pension funds — to finance critical infrastructure projects across Africa.
