The Nigeria Sovereign Investment Authority (NSIA) has selected Goldman Sachs, UBS and Credit Suisse as asset managers for the 20% portion of its US$1 billion Stabilisation fund that is meant to cushion against oil price shocks.

The Stabilisation Fund, the statement noted, is intended to act as a buffer against short-term macro- economic instability.

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The sovereign wealth fund (SWF) seeks to help Nigeria better manage its oft squandered oil windfall, with a threefold aim of putting money aside for infrastructure investment, providing a savings pot for future generations and lastly protecting against commodity price shocks .

The fund has a conservative orientation, with capital preservation in nominal terms being of primary importance.

The fund is restricted to investing in investment grade sovereign and corporate fixed income assets.

In May the NSIA said it would allocate 32.5% of the fund to infrastructure, the same amount to the savings pot and 20% to the stabilisation fund, with the remaining 15% unallocated.

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Uche Orji, MD and CEO of the NSIA, said: "UBS was selected to manage the US Treasury Bond portfolio and that Goldman Sachs and Credit Suisse were selected to manage the investment grade US corporate bond portfolio.

"This marks another important milestone for NSIA and follows a comprehensive process of review and evaluation of world-class candidates for this mandate.

"The appointment of three leading global investment banks to assist with the management of the Stabilisation Fund – drawing on the particular expertise of each to match our investment management requirements – will help us achieve the economic policy objectives set for NSIA and attain the highest standards of financial stewardship to which NSIA aspires," Orji added.