The Nigerian Sovereign Wealth Fund (SWF), managed by the Nigerian Sovereign Investment Authority (NSIA), is established by an Act passed in 2011 with initial seed capital of US$ 1 billion. Following the disputes with states governments, the SWF is currently funded from federal government contributions. In 2014, an additional US$ 550 million was allocated to it, to be managed on behalf of Nigerian government NSIA partnered with the International Finance Corporation to increase the infrastructure projects Nigeria’s sovereign wealth fund made its first investment, handing over $200m to UBS, Credit Suisse and Goldman Sachs to manage a fixed income portfolio in 2013 By April 2014, the SWF had accrued an income of N 505.694 million over the course of 15 months of operations
The NSIA, established with the concept of the Excess Crude Account (ECA) in mind, operates three separate funds for the ultimate benefit of Nigerians. These are: (i) the stabilization funds (receiving 32.5% of the funds) (ii) the future generations fund (also receiving 32.5% of the funds) and (iii) the infrastructure fund (receiving 20% of the fund). The stabilization fund is the only fund that is available for a draw down but only at the instance of the Minister of Finance. The fund is subject to external supervision of the Ministry of Finance, the board and the governing council and subject to external managers.
The Nigerian sovereign wealth fund is the third largest in sub-Saharan Africa, after the $6.9bn Botswana and $5bn Angola funds. However, the Nigeria SWF is comparably tiny as opposed the funds set aside in Saudi Arabia, Norway and Abu Dhabi, which have more than $600bn in assets as part of their funds Nigeria sadly has frittered its oil revenues with large infrastructure deficit and has also not saved enough for the future generations.