The Nigeria Sovereign Investment Authority (NSIA), is an investment institution of the Federation set up to manage funds in excess of budgeted hydrocarbon revenues. The NSIA derives its mandate from the NSIA Act which was signed into law in May 2011. It empowers the Authority to receive, manage and invest funds in a diversified portfolio of medium and long term assets on behalf of the Federal Government, State Governments, Federal Capital Territory, and Local Governments Area Councils in preparation for the eventual depletion of Nigeria’s hydrocarbon resources. To give effect to the mandates, the NSIA established three main funds: the Stabilisation Fund, the Future Generations Fund and the Nigeria Infrastructure Fund.
The role of the Stabilisation Fund is to provide budget support in times of economic stress; the Future Generations Fund is an inter-generational savings fund for future generations of Nigerians while the Nigeria Infrastructure Fund is to invest in domestic infrastructure.
The Nigeria Sovereign Investment Authority commenced operations in 2012, with the inauguration of the Board of Directors on 9th October, 2012. After a series of start-up challenges, the NSIA began investment activities in the 3rd quarter of 2013, with a seed capital of US$1 billion.
A further net core contribution of US$600m has been injected to the NSIA since 2016. This came in three tranches of US$250m in 2016, 2018 and 2020 respectively while the sum of US$150million was withdrawn from the Stabilisation Fund to augment government’s budget at the height of the covid-19 pandemic.
The Authority’s ownership interests are held by all the Federating Units as follows:
The NSIA is a signatory to the Santiago Principles of the International Monetary Fund (IMF) / International Forum of Sovereign Wealth Funds (IFSWF), which are a set of 24 voluntary guidelines that assign best practices for the operations of Sovereign Wealth Funds (SWF) including transparency and governance.
Mission: To play a leading role in driving sustained economic development for the benefit of all Nigerians through:
- Building a savings base for the Nigerian People.
- Enhancing the development of Nigeria’s infrastructure.
- Providing stabilisation support in times of economic stress.
Vision: To establish NSIA as a leading sovereign wealth fund globally, playing a role in promoting investments for Nigeria’s economic development.
Values: In our quest to become the yardstick of national fiscal discipline, our culture is shaped by values that transcend the norm in public service.
- Discipline: Within the ambit of our enabling Act, we conscientiously apply ourselves in all we do.
- Integrity: We are uncompromising in our adherence to the tenets of probity, character, and accountability in all our endeavours.
- Transparency: Ours is an institution characterized by clear and best-in-class business practices.
For more info, visit www.nsia.com.ng
