Nigeria's sovereign wealth fund will be financed by the Federal Government to build a savings and investments base from the country's hydrocarbon wealth. JP Morgan was appointed as the custodian of the fund in February 2013.
The new arm consists of three different funds: the Future Generation Fund, the Nigeria Infrastructure Fund, and the Stabilisation Fund.
The investment allocation formula stipulates that the Future Generation Fund and the Nigeria Infrastructure Fund would each get $325 million, or 32.5%, while $200 million, or 20% would go to the Stabilisation Fund, leaving a balance of $150 million, or 15% for future investment opportunities.
The Chief Executive Officer, Uche Orji, announced, at a media briefing in Abuja the formal take-off of operations of the Authority with the mentioned injection of $525 million.
The funds will invest in commercially viable projects that would help it earn good returns on investment for Nigerians. Areas of focus for the Infrastructure Fund portfolio will include healthcare, transportation, water resources, power, and housing.