Nigeria has passed into law a Sovereign Investment Authority (Establishment) Act, 2011 to among other things create a Nigerian Sovereign Investment Authority, which Authority is charged to receive, manage and invest in diversified portfolios, the medium and long-term “excess” revenues of the Federal, State, Local Governments and Area Councils in Nigeria, in medium and long terms investment portfolios.

The benefits of the Nigerian Sovereign Wealth Fund are intended to be applied to (i) building a savings and reserve base for Nigeria in the light of the non-renewable nature of her hydrocarbon resources; (ii) developing infrastructure that will promote local and foreign direct investments that will diverse the Nigerian economy, and (iii) provide a stabilisation fund for Nigeria.