NSIA gets additional $250 million funding

20 Nov 2015
Chibuike Oguh

Summary

The Nigerian Sovereign Investment Authority was created in 2011 with a seed capital of $1 billion.

Uche Orji, Managing Director/CEO, Nigeria Sovereign Investment Authority

The Federal Government of Nigeria has increased the capitalisation of its Sovereign Wealth Fund (SWF) by $250 million.

The increased funding was disclosed after a National Economic Council meeting, chaired by Vice President Yemi Osinbajo, in Abuja on Thursday.

During the meeting, the three tiers of government agreed to add $250 million to the SWF out of the $400 million dividend deposited into the Federation Account by the Nigerian Liquefied National Gas Company (NLNG).

“The council agreed that $250 million from the $400 million NLNG dividends be invested in the Nigerian Sovereign Investment Authority to increase its capital,” said Osun State Governor Rauf Aregbesola, who alongside the Minister of Budget and National Planning, Udo Udoma, and the Enugu State Governor, Ifeanyi Ugwuanyi, briefed journalists at the end of the meeting.

“Council resolved that the balance of $150m of the said $400 million NLNG funds be shared accordingly in the prescribed formula at the Federation Account Allocation Committee (FAAC),” Aregbesola said.

The Nigerian Sovereign Investment Authority was created in 2011 with a seed capital of $1 billion. The NSIA’s investments are made through three funds: Future Generations Fund (FGF), Nigeria Infrastructure Fund (NIF) and Stabilization Fund. 40 percent of the seed capital is allocated to the FGF, another 40 percent is allocated to the NIF and SF has 20 percent allocation.

Chibuike Oguh is Financial Nigeria's Frontier Markets Analyst



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