NSIA receives funding primarily from the surplus income generated from the sale of Nigeria's crude oil. The Authority was allocated an initial sum of US$1 billion in seed capital in 2013. Since then there have been three additional tranches of contributions to the core fund.
The Governing Council approves all fund contributions to the NSIA to enable growth of Nigeria’s Sovereign Wealth Fund (SWF). For accountability and equity, each tranche of funds received by the Authority is vetted by the Accountant General of the Federation (AGF). In doing this, the AGF also breaks down and apportions the funds by capital contribution to the federating units of Nigeria using the Federation’s Revenue Allocation Formula (as approved by Revenue Mobilization And Fiscal Commission (RMAFC). The allocation is as follows:
- Federal Government – 52.68 %
- State Governments – 26.72 %
- Local Governments – 20.60 %
The contributions/funding schedule to date is provided below for both direct contributions and managed funds
Direct Contributions
| Tranche | Contribution | Capital Allocation | Approving Authority | Source | Allocation Formula | Transfer Date |
|---|---|---|---|---|---|---|
| 1. | US$1 billion | SF: US$200 million NIF: US$400 million FGF: US$400 million |
National Economic Council Meeting/Governing Council Meeting | Excess Crude Account (ECA) | Federal Gov’t: 52.68% State Gov’t: 26.72% Local Gov’t Councils: 20.60% |
5-Feb-13 |
| 2. | $250 million | SF: US$50 million NIF: US$100 million FGF: US$100 million |
National Economic Council Meeting/Governing Council Meeting | NLNG Dividend | Federal Gov’t: 52.68% State Gov’t: 26.72% Local Gov’t Councils: 20.60% |
15-Jan-16 |
| 3. | US$250 million | SF: US$50 million NIF: US$100 million FGF: US$100 million |
National Economic Council Meeting/Governing Council Meeting | Excess Crude Account (ECA) | Federal Gov’t: 52.68% State Gov’t: 26.72% Local Gov’t Councils: 20.60% |
18-Jul-17 |
| 4. | US$250 million | SF: US$50 million NIF: US$125 million FGF: US$75 million |
National Economic Council Meeting/Governing Council Meeting | Excess Crude Account (ECA) | Federal Gov’t: 52.68% State Gov’t: 26.72% Local Gov’t Councils: 20.60% |
20-Apr-20 |
FGN Capital contribution apportionment
The Federal Government’s Share is further distributed as follows:
- Federal Government – 48.5 %
- 1.46% Derivation & Ecology – 1 %
- Federal Capital Territory – 1 %
- 0.72% of Stab. Account – 0.5 %
- 3.0% Dev. Of Nat. Resources – 1.68 %.
Withdrawal from the Stabilisation Fund of the NSIA:
Sections 47 and 49 of the NSIA Act, 2011 allow for funds to be withdrawn from the Stabilization Fund (SF) where certain criteria are met. When any money is withdrawn from the SWF, NSIA immediately communicates to the AGF who will distribute/allocate the withdrawn amount to all the stakeholders according to the Federation’s Revenue Allocation Formula. Consequently, the stakeholder’s respective capital in the SWF is reduced by the withdrawn amount as allocated.
In 2020 during the COVID pandemic, Government withdrew the sum of US$150m from the SF to fund its COVID intervention budget. NSIA continues to invest the SF in fixed income assets; mostly in short tenured, high quality interest yielding instruments to enable it meet any unexpected requests from Government.
PIDF - Managed Funds
The Presidential Infrastructure Development Fund ("PIDF") is a special intervention fund set up by President Muhammadu Buhari Administration to address 4 (originally 5) key infrastructure projects of national priority. The projects are: the Lagos-Ibadan Express, the Abuja-Kano Road, the 2nd Niger Bridge and the Mambilla Hydroelectric Power project.
The schedule of funding provided to date is as follows:
| Tranche | Contribution | Capital Allocation | Approving Authority | Source | Transfer Date |
|---|---|---|---|---|---|
| 1. | US$650 million | PIDF I: US$650 million | Presidency (PIDF) | Presidency | 7-Jun-18 |
| 2. | ₦90 billion (Reduced to Net Sum of ₦70.3 billion for deployment to the ongoing projects) | PIDF II: On July 21, 2020, ₦19.67 billion earmarked for the East West Road was returned to the Federal Ministry of Finance, Budget and National Planning, for onward remittal to Federal Ministry of Niger Delta Affairs, leaving a balance of ₦70.33 billion to be put towards the ongoing projects. | Presidency (PIDF) | 2018 Budgetary Allocation | 30-Sep-19 |
| 3. | US$311.8 million | PIDF III: US$311.8 million | Presidency (PIDF) | Abacha Recovered Asset | 13-May-20 |
| 4. | US$169.5 million | PIDF IV: $169.5 million | Presidency (PIDF) | NNPC /NLNG 1st Tranche | 23-Apr-21 |
| 4. | ₦163 billion | PIDF V: ₦163 billion | Presidency (PIDF) | Infracorp | 11-Aug-21 |
DMO - Managed Funds
| Tranche | Contribution | Capital Allocation | Approving Authority | Source | Allocation Formula | Transfer Date |
|---|---|---|---|---|---|---|
| 1. | US$200m | US$200m | Presidency | FGN Eurobonds 2018, FGN Eurobonds 2023 |
N/A | October 2014 |