Monthly allocation to States may decline as NSIA demands N100 billion support

In a bid to drive large scale investments to drive Nigeria’s economic growth, the Nigeria Sovereign Investment Authority NSIA, has requeated for the sum N100 billion frrom the Federal Government.

The oficial request was presented by the Managing Director and Chief Executive Officer of NSIA, Aminu Umar-Sadiq, and if approved, may decline monthly statutory allocation going to States of the Federation.

The NSIA said the fund would boost the nation’s residual funds with the support of N100bn monthly.

The NSIA DG made the request at the March revenue-sharing meeting of the Federation Account Allocation Committee held between April 14 and 15, 2025.

The copynof the documents was however obtained by journalists during a meeting on Friday.

Umar-Sadiq appealed to the committee, which includes state commissioners of finance, to consider and approve the request, with funding proposed to commence from the March FAAC allocation.

The presentation was titled, “Activating Residual Funding for the Nigeria Sovereign Investment Authority – Unlocking Opportunities for Large-Scale Investments to Drive Nigeria’s Economic Growth.”

According to the document, the NSIA is requesting a structured monthly disbursement of N100bn from Residual Funds—revenues in the Federation Account beyond projected hydrocarbon income—to establish a Naira-based investible capital pool.

The move, the authority says, will enhance its capacity to finance critical domestic infrastructure projects.

The MD said, “The funding would position the authority as a leading sovereign wealth fund globally, promoting responsible and strategic investments for Nigeria’s economic development and enhancing its threefold mandate to build a savings base for the country, enhance the development of infrastructure, and provide stabilisation support.”

He explained that residual funds are a legitimate source of funds transferred to the authority, provided that the derivation portion of the revenue allocation formula shall not be included as part of this funding.