Monthly allocations to state governments from the Federation Account may reduce in the coming months following a fresh request by the Nigeria Sovereign Investment Authority (NSIA) for N100bn monthly support to boost the nation’s investment funds.
The Managing Director and Chief Executive Officer of NSIA, Mr Aminu Umar-Sadiq, made the request during the March revenue-sharing meeting of the Federation Account Allocation Committee (FAAC) held between April 14 and 15, 2025.
Umar-Sadiq urged the committee, which includes state commissioners of finance, to consider and approve the proposal, with the planned deductions expected to commence from the March FAAC allocation.
The presentation, titled, “Activating Residual Funding for the Nigeria Sovereign Investment Authority – Unlocking Opportunities for Large-Scale Investments to Drive Nigeria’s Economic Growth,” outlined how the move would position NSIA to fund major infrastructure projects and stimulate economic growth.
According to the document, the NSIA is requesting a structured monthly disbursement of N100bn from the “Residual Funds”—revenues left in the Federation Account after projected hydrocarbon earnings are accounted for—to create a Naira-based investible capital pool.
Umar-Sadiq explained that the initiative would strengthen NSIA’s role as a top sovereign wealth fund globally, supporting strategic investments aimed at boosting Nigeria’s economy.
“The funding would help the authority fulfil its threefold mandate—to build a savings base for the country, enhance infrastructure development, and provide economic stabilisation support,” he said.
He also clarified that the residual funds being requested do not include the derivation portion of revenue meant for oil-producing states, assuring that the proposal is in line with the legal framework guiding the use of federation revenues.
