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The Nigeria Sovereign Investment Authority (NSIA), managers of the country’s Sovereign Wealth Fund (SWF) received additional contribution of $138.79 million (N207.07 billion), during the period ended 31st March 2025, pushing total assets past $3 billion.
This new contribution received as Royalty by Price from the Government, is based on the implementation of the Petroleum Industry Act (PIA) of 2021.
The Petroleum Industry Act (PIA) 2021 was a landmark piece of legislation signed into law by ex-President Muhammadu Buhari in August of 2021, representing a significant overhaul of Nigeria’s oil and gas sector.
The PIA introduces a new royalty and tax regime for upstream (exploration and production) and downstream (refining and distribution) activities which aims to ensure government revenue is maximized while maintaining competitiveness for investors.
PIA also establishes a royalty payable based on price ranging from 0% – 10% for crude oil and condensates (“Royalty by Price”) which underscores the new source of capital inflow for the Authority.
Total assets of the Nigeria Sovereign Wealth Fund or NSIA at the end of March 2025, jumped to N4.689 trillion ($3.12 billion), led by investment securities of N3.32 trillion and cash and cash equivalents of N1.13 trillion.
The NSIA’s profit slumped by 97% in the first quarter (Q1) of 2025, largely due to loss booked on financial assets due to its inefficient hedge fund trading strategy as well much lower FX gains.
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