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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.

NSIA funds

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
NIF: $22.8 million
FGF: $13.7 million

Enabling Act

Petroleum Industry Act

a

a

Source

Royalty by Price/NUPRC

Allocation Formula

FG: 44.96%
SG: 36.25%
LGA/LCDA: 17.76%
FCT: 1.03%

Contribution

$96.41 Million

Transfer Date

Jan 2024

Allocation Formula

FG 46.4%
State 34.9%
LG 18.2%
FCT. 0.5%

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
NIF: US$400 million
FGF: US$400 million

Approving Authority

National Economic Council
Meeting/Governing
Council Meeting

Source

Excess Crude
Account (ECA)

Allocation Formula

FG: 45.83%
SG: 36.25%
LGA/LCDA: 17.76%
FCT: 0.16%

Contribution

$250 million

Transfer Date

January 2016

Capital Allocation

SF: US$50 million
NIF: US$100 million
FGF: US$100 million

Approving Authority

National Economic Council
Meeting/Governing
Council Meeting

Source

NLNG Dividend

Allocation Formula

FG: 51.68%
SG: 26.72%
LGA/LCDA: 20.41%
FCT: 1.19%

Contribution

$250 million

Transfer Date

July 2017

Capital Allocation

SF: US$50 million
NIF: US$100 million
FGF: US$100 million

Approving Authority

National Economic Council
Meeting/Governing
Council Meeting

Source

Excess Crude Account (ECA)

Allocation Formula

FG: 44.96%
SG: 36.25%
LGA/LCDA: 17.76%
FCT: 1.03%

Contribution

$250 million

Transfer Date

April 2020

Capital Allocation

SF: US$50 million
NIF: US$125 million
FGF: US$75 million

Approving Authority

National Economic Council
Meeting/Governing
Council Meeting

Source

Excess Crude Account (ECA)

Allocation Formula

FG: 44.96%
SG: 36.25%
LGA/LCDA: 17.76%
FCT: 1.03%

DMO – Managed Funds

Contribution

$200m

Capital Allocation

$200m

Approving Authority

Presidency

Source

FGN Eurobonds 2018,
FGN Eurobonds 2023

Allocation Formula

N/A

The Three Mandate

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01

Nigeria Infrastructure Fund

The NIF is one of three distinct and ring-fenced funds managed by the Authority. It focuses entirely on domestic investments in selected infrastructure sectors, including motorways, healthcare, power, and agriculture.

02

Future Generations Fund

The Future Generations Fund was created by the NSIA Act 2011 and became operational in 2012. At its creation, 40% of the Authority’s seed capital was allocated to this Fund. The percentage allocation was applied to the core capital contributions received by the Authority.

03

Stabilization Fund

The SF has an allocation of 20% among the Authority’s pool of core funds. It is structured to play a fundamental role in serving as a source of economic stability in times of acute fiscal revenue shortfall.

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.