THE MANAGEMENT AND CONTROL OF SOVEREIGN WEALTH FUND UNDER THE NIGERIAN SOVEREIGN INVESTMENT AUTHORITY ACT 2011

Abstract

This article examined the management and control of Sovereign Wealth Funds (SWFs) under the Nigerian Sovereign Investment Authority (NSIA) Act 2011. Utilizing a doctrinal research methodology, the study analyzed the legal framework governing the NSIA and its three constituent funds against the backdrop of Nigeria’s fiscal federalism. The research found that while the NSWF was established to provide economic stabilization, intergenerational equity, and infrastructure development, its operation faced significant constitutional challenges. Specifically, the study evaluated the legality of diverting revenues into the SWF versus the mandatory requirements of the Federation Account under Section 162 of the 1999 Constitution. It was observed that political suspicion and disputes over revenue sharing between the federal and state governments hindered the Fund’s effectiveness. The article concluded that despite the NSIA's positive interventions in critical infrastructure, legislative reforms were necessary to clarify its legal status and strengthen its independence from political interference. Ultimately, the study recommended harmonizing the legal framework to ensure transparency and compliance with global best practices.