Nigeria has increased in its Sovereign Wealth Fund (SWF) capital by an additional $250 million, bringing the total investment portfolio to about $1.750 billion since inception, according to the business news website, Global Financial Digest. Although the decision to increase the investment in the SWF was taken by the government last November, the fund was not released until last month.

Nigeria established its SWF in 2013 with a seed capital of $1 billion as part of measures to manage the country’s excess proceeds from crude oil export above the budgetary benchmark. The fund is being managed by Nigeria Sovereign Investment Authority (NSIA) on behalf of the three tiers of government. Last year, NSIA said it had grown the seed capital of $1.5 billion by $350 million, increasing the capital of the SWF to around $1.85 billion. With the additional $250 million investment in the Fund, this means that the total capital should be around $2.10 billion. It would be recalled that in response to claims that the country’s Excess Crude Account (ECA) was depleted between January and February, Ebonyi State Governor, Chief David Umahi, said on Thursday that the change in balance of the ECA from $325 million last month to $71 million was due mainly to the new $250 million investment in the NSIA, approved by the National Economic Council (NEC).

Umahi, who spoke after the meeting of the NEC in Abuja, said the ECA was being managed with the knowledge of state governors contrary to some speculations in the media. “The Authority -NSIAis doing very well, they are handling infrastructure so nicely that the governors and the Federal Government are investing well. “When the investment was made both the Federal Government, state governments and local governments all get their investment certificates, so we are together in this,” Umahi was quoted by a statement from the office of the Vice- President Yemi Osinbajo.

NSIA started operations in 2012 and received a $1 billion seed capital in 2013 with which it began its investment operations. Between 2016 and 2017, additional contributions of $500 million were made to the Authority by the President Muhammadu Buhari administration. NSIA manages three ring-fenced funds – the Stabilisation Fund (SF), the Future Generations Fund (FGF), and the Nigeria Infrastructure Fund (NIF) – as required by the NSIA Act. The Authority allocates its core capital across these three funds. The PIDF is a non-core capital managed by the authority.