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 Contribution
PIDF - Managed Funds
DMO – Managed Funds
Direct Contribution
PIDF - Managed Funds
DMO – Managed Funds
Direct Contributions
Contribution
$250 million
Transfer Date
20-Apr-2020
 |
Capital Allocation |
SF: US$50 million |
 |
Approving Authority |
National Economic Council |
 |
Source |
Excess Crude Account (ECA) |
 |
Allocation Formula |
Federal Gov’t: 52.68% |
Contribution
$250 million
Transfer Date
18-Jul-2017
|
Capital Allocation |
SF: US$50 million |
|
Approving Authority |
National Economic Council |
|
Source |
Excess Crude Account (ECA) |
|
Allocation Formula |
Federal Gov’t: 52.68% |
Contribution
$250 million
Transfer Date
15-Jan-2016
|
Capital Allocation |
SF: US$50 million |
|
Approving Authority |
National Economic Council |
|
Source |
NLNG Dividend |
|
Allocation Formula |
Federal Gov’t: 52.68% |
Contribution
US$1 billion
Transfer Date
04-Feb-2013
|
Capital Allocation |
SF: US$200 million |
|
Approving Authority |
National Economic Council |
|
source |
Excess Crude |
|
Allocation Formula |
Federal Gov’t: 52.68% |
PIDF – Managed Funds
Contribution
₦163 billion
Transfer Date
11-Aug-21
|
Capital Allocation |
PIDF V: ₦163 billion |
|
Approving Authority |
Presidency (PIDF) |
|
Source |
Infracorp |
Contribution
$169.5 million
Transfer Date
23-Apr-21
|
Capital Allocation |
PIDF IV: $169.5 million |
|
Approving Authority |
Presidency (PIDF) |
|
Source |
NNPC /NLNG 1st Tranche |
Contribution
US$311.8 million
Transfer Date
13-May-20
|
Capital Allocation |
PIDF III: US$311.8 million |
|
Approving Authority |
Presidency (PIDF) |
|
Source |
Abacha Recovered Asset |
Contribution
₦70.3 billion
Transfer Date
30-Sep-19
|
Capital Allocation |
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. |
|
Approving Authority |
Presidency (PIDF) |
|
Source |
2018 Budgetary Allocation |
|
Contribution |
₦90 billion (Reduced to Net Sum of ₦70.3 billion for deployment to the ongoing projects) |
Contribution
US$650 million
Transfer Date
7-Jun-18
|
Capital Allocation |
PIDF I: US$650 million |
|
Approving Authority |
Presidency (PIDF) |
|
Source |
Presidency |
DMO – Managed Funds
Contribution
$200m
|
Capital Allocation |
$200m |
|
Approving Authority |
Presidency |
|
Source |
FGN Eurobonds 2018, |
|
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.
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.
