Funding
Future focused economic development funding
NSIA receives economic development 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 contributions/economic development funding schedule to date is provided below for both direct contributions and managed funds
Direct Contributions
Contribution
$45.59 million
Transfer Date
April 2023
 |
Capital Allocation |
SF: $9.1 million |
 |
Enabling Act |
Petroleum Industry Act a a |
 |
Source |
Royalty by Price/NUPRC |
 |
Allocation Formula |
FG: 44.96% |
Contribution
$96.41 Million
Transfer Date
Jan 2024
|
Allocation Formula |
FG 46.4% |
|
Enabling Act |
Petroleum Industry Act a a |
|
Source |
Royalty by Price/NUPRC a a |
Contribution
$1.0 billion
Transfer Date
February 2013
|
Capital Allocation |
SF: US$200 million |
|
Approving Authority |
National Economic Council |
|
Source |
Excess Crude |
|
Allocation Formula |
FG: 45.83% |
Contribution
$250 million
Transfer Date
January 2016
|
Capital Allocation |
SF: US$50 million |
|
Approving Authority |
National Economic Council |
|
Source |
NLNG Dividend |
|
Allocation Formula |
FG: 51.68% |
Contribution
$250 million
Transfer Date
July 2017
|
Capital Allocation |
SF: US$50 million |
|
Approving Authority |
National Economic Council |
|
Source |
Excess Crude Account (ECA) |
|
Allocation Formula |
FG: 44.96% |
Contribution
$250 million
Transfer Date
April 2020
|
Capital Allocation |
SF: US$50 million |
|
Approving Authority |
National Economic Council |
|
Source |
Excess Crude Account (ECA) |
|
Allocation Formula |
FG: 44.96% |
DMO – Managed Funds
Contribution
$200m
|
Capital Allocation |
$200m |
|
Approving Authority |
Presidency |
|
Source |
FGN Eurobonds 2018, |
|
Allocation Formula |
N/A |
The Three Mandate Funds
FGN Withdrawal
- 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 Stabilisation 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.
