The Nigeria Sovereign Investment Authority (NSIA) says the balance of the stabilisation fund would be $201 million after the $150 million withdrawal ordered by President Muhammadu Buhari.
The sovereign wealth fund manager said the stabilisation fund was created to offer respite in times of economic emergencies.
According to Zainab Ahmed, the minister of finance, budget and national planning, the withdrawal would be used to augment the June 2020 federation accounts and allocation committee (FAAC) planned disbursements to the three tiers of government.
“Section 47(2) of the NSIA (Establishment etc.) Act 2011 provides that the authority shall have the right to utilize capital and assets in the Stabilisation Fund to supplement resources available to stabilize the national economy, subject to a formal request from the honourable minister of finance of Nigeria.
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“The other funds remain intact and ring-fenced.”
The $351 million balance of the fund is said to be comprised of $300 million in contributions and $51 million returns.
Speaking on the withdrawal, Uche Orji (pictured), NSIA chief executive officer, said: “The NSIA (Establishment etc.) Act 2011 is clear on our role. The NSIA is, in part, to serve as a stabilisation mechanism for the country through the SF. Beyond the withdrawal, we are also exploring other avenues to support the country through various social investment initiatives.”
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The stabilisation fund allocation is 20% of NSIA overall funds under management.
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