The NSIA seeks N100bn monthly from residual funds, a move that could cut states’ FAAC allocations but boost Nigeria’s infrastructure and savings base.
State Allocations May Drop as NSIA Pushes for N100bn Monthly Investment Boost
State governments across Nigeria could soon experience a reduction in their monthly allocations from the Federation Account as the Nigeria Sovereign Investment Authority (NSIA) seeks approval for a N100bn monthly funding plan.
The Managing Director and Chief Executive Officer of NSIA, Aminu Umar-Sadiq, made the request during the March revenue-sharing meeting of the Federation Account Allocation Committee (FAAC), which took place between April 14 and 15, 2025. A copy of his detailed presentation was obtained by our correspondent on Friday.
BREAKING: EFCC Secures Court Order to Arrest CBEX Crypto Fraud Suspects Over Alleged $1 Billion Scam
Umar-Sadiq urged members of FAAC, including state finance commissioners, to approve the monthly disbursement starting from the March allocation cycle.
The proposal, titled “Activating Residual Funding for the Nigeria Sovereign Investment Authority – Unlocking Opportunities for Large-Scale Investments to Drive Nigeria’s Economic Growth,” seeks to tap into residual funds revenues left in the Federation Account after projected oil and gas earnings to create a powerful pool of investible capital.
According to the NSIA, securing N100bn monthly would significantly strengthen Nigeria’s ability to finance key domestic infrastructure projects and secure long-term economic growth.
“The funding would position the authority among the world’s leading sovereign wealth funds,” Umar-Sadiq said. “It will promote responsible, strategic investments for Nigeria’s economic development while fulfilling our threefold mandate: building a savings base, enhancing infrastructure development, and providing stabilisation support.”
He further clarified that while the NSIA would tap into residual funds, the portion allocated to the 13% derivation for oil-producing states would remain untouched.
Although the plan promises long-term benefits, it may lead to slight cuts in the federal allocations distributed to states in the short term.
The NSIA N100bn monthly request marks a critical turning point in Nigeria’s effort to secure sustainable investments for future generations.
