It is intended to invest the savings gained on the difference between the budgeted and actual market prices for oil to earn returns that would benefit future generations of Nigerians.

[5] The fund was allocated an initial US$1 billion in seed capital,[1] and, an additional $0.60billion has been contributed to date by the current administration.

[5] Excess oil reserves were previously allocated to the Excess Crude Account (ECA), which was set up in 2004 as a stabilisation fund to meet the country's yearly budget deficits and to contribute to the development of local infrastructure.

[4][5][13][14] It is also expected that managing these reserve funds will help to protect Nigeria's economy from external shocks.

[13] With an initial financing of US$1bn USD from the Nigerian government, the fund is the third largest in Sub-Saharan Africa, after Botswana and Angola.

[13][15][16] Mr. Aminu Umar-Sadiq was appointed managing director and chief executive officer of the NSIA on Friday, 30 September 2022.

The NSIA was invited to request observer status at the International Forum of Sovereign Wealth Funds (IFSWF), with the intention of eventual membership.

It would be a last resort from which government may withdraw annually to meet shortfalls in the budget brought about by falls in oil prices[3] or other budgetary constraints.