Nigeria picks Team to Invest its Oil money

Okonjo-Iweala said she hoped by the end of the year the team would lay out plans for the $1 billion but did not say when investments would start.

The SWF has three main aims: saving money for future generations, funding infrastructure and defending the economy against commodity price shocks.

"I think the sovereign wealth fund will make Nigeria more attractive for investors," Okonjo-Iweala told reporters.

She said she hoped more money would be paid in later, adding that 20 percent of the fund would go to each of its three targets and the board would decide how to invest the other 40 percent.

President Goodluck Jonathan signed a bill into law in May last year authorising the SWF, but powerful state governors originally blocked the fund, saying it was unconstitutional.

They later agreed to it going ahead, albeit with an initial limit of $1 billion, a fraction of the $7 billion savings that are in Nigeria's Excess Crude Account (ECA).

Many state governors fear the SWF will mean less money for them to spend than the current ECA system for saving oil cash.

"The battle was long but I think the country stands to gain and I think it was worth it," Okonjo-Iweala said on Tuesday.

The SWF is meant to replace the ECA eventually but Okonjo-Iweala told Reuters last week the two will run side-by-side until people get comfortable with the SWF.

Critics say the ECA is opaque and can be too easily used.

The account contained $20 billion in 2007 but fell to $3 billion after a presidential election last year, despite five years of high oil prices. It has since risen to $7 billion. (Reuters)