The National Economic Council [NEC] has approved that the bill for the sovereign wealth fund can now be forwarded to the national assembly.

The sovereign wealth fund which has been on the front burner for some months is to be taken from the excess crude account to execute infrastructure and other projects other than the usual practice of sharing the money out to the states.

Briefing state house correspondents, the minister of finance Mr Olusegun Aganga and the governor of Lagos state Babatunde Fashola said that the NEC will now take the approval to the federal executive council for transmission to the national assembly.

Aganga also explained that the fund would take over the "unconstitutional" excess crude account, which over the years has been a source of controversy and noted that at the moment, a percentage of the excess crude money will be used for the takeoff of the fund.

"On Wednesday, it will be presented to the federal executive council and hopefully it will be sent to the attorney general of the federation who will then send it to the national assembly for legislation," he said.

The minister however added that the timing before it becomes law is entirely the responsibility of the national assembly but will work with them to ensure that the bill is passed as soon as possible.

Speaking on the fund, Lagos State governor, Babatune Fashola, said "the establishment of the fund is an attempt by the government to move from unconstitutionality of the excess crude account to a formal and constitutional regime".

He however noted that the national economic council will decide on how this will be done after consultation with other agencies.

A few months ago, the NEC set up the NSWF, which is to be primarily responsible for the stabilization, intervention and infrastructure development in the country.