States across Nigeria may see a decline in their monthly allocations following a request by the Nigeria Sovereign Investment Authority (NSIA) for N100 billion monthly funding from residual federation account funds.
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) held between April 14 and 15, 2025. A copy of his presentation was obtained by The PUNCH on Friday.
According to Umar-Sadiq, the proposed funding would unlock large-scale investments aimed at driving Nigeria’s economic growth.
“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 said.
Titled “Activating Residual Funding for the Nigeria Sovereign Investment Authority – Unlocking Opportunities for Large-Scale Investments to Drive Nigeria’s Economic Growth,” the presentation outlined a plan to channel N100bn monthly from Residual Funds — revenues in the Federation Account beyond projected hydrocarbon income — into a naira-based investible capital pool.
Umar-Sadiq stressed that the derivation portion of the revenue allocation formula would not be included in the proposed funding mechanism, ensuring compliance with existing financial regulations.
He added that the initiative would significantly strengthen NSIA’s capacity to finance critical domestic infrastructure projects, contributing to Nigeria’s broader economic stability.
Residual funds, he explained, are a legitimate source of additional funding for the NSIA under the current structure of the federation account.
