A LEGAL APPRAISAL OF THE MANAGEMENT AND CONTROL OF SOVEREIGN WEALTH FUND IN LIGHT OF THE EXCESS CRUDE ACCOUNT

Abstract

This paper examined the legal framework and management of Nigeria’s Sovereign Wealth Fund
in comparison to the Excess Crude Account. Using a doctrinal research methodology, the paper analyzed
relevant statutes, including the Nigerian Sovereign Investment Authority, Act 2011 and the 1999
Constitution. The paper found that while the ECA served as a vital stabilization tool, it was plagued by
constitutional disputes over revenue sharing and lacked a solid legal foundation, leading to its depletion.
The establishment of the NSIA was identified as a strategic reform intended to provide a more transparent
and legally robust mechanism for managing oil surpluses through its three-pronged fund structure.
However, the paper revealed that the SWF still faces significant legal opposition from state governments
regarding fiscal federalism and concerns over the practical independence of its Board. The study concluded
that for the SWF to succeed where the ECA failed, there must be strict adherence to constitutional
provisions and enhanced institutional accountability