The Buhari-led administration has proposed to inject $1 billion into the Nigerian Sovereign Wealth Fund (SWF). The three-pronged Sovereign Wealth Fund will finance the Stabilisation Fund, Future Generation Fund and the Nigerian Infrastructure Fund.
Buhari plans to add $4.5 billion to the SWF by 2018, dismissing concerns that the fund may not receive additional investment as a result of falling oil prices, which is the bedrock for its funding.
According to the Nigerian Sovereign Investment Authority (NSIA), through its Managing Director, Uche Orji, SWF still has about $1.5 billion assets under management since its establishment in 2011 by the Goodluck Jonathan government.
The new proposal seeks to inject at least $1 billion each year over the next 3 years in the Medium Term Plan (2016-2020). This was contained in a draft which also highlights plans to raise the Excess Crude Account (ECA) to $4.5 billion by 2018 and grow foreign reserve to $7.65 billion.
The proposed Mid-term policy document has six main pillars including economy, social development, infrastructure, governance, environment and regional development, which will be the focus for the government’s fiscal expenditure.
The Buhari government will seek non-oil alternative funding to cushion the effect of the falling oil prices that have seen Nigeria’s revenue fall short.
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