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You are here:Home>>Strategic Research & Analysis>>Sovereign Wealth Fund is unconstitutional - Nigerian Governors
Monday, 22 August 2011 20:34

Sovereign Wealth Fund is unconstitutional - Nigerian Governors

Written by NAN/Shakira/Ekata

Nigerian Governors say Sovereign Wealth Fund is unconstitutional

The Nigeria Governors` Forum (NGF) has called on the Federal Government to suspend the operation of the Sovereign Wealth Fund (SWF), saying it is unconstitutional.

The governors made the call in a communiqué issued at the end of its meeting on Sunday in Abuja, the nation’s capital, which was read by Governor Rotimi Amaechi of Rivers State, South-South Nigeria.

 Mr. Amechi - River state

“Members resolved to call on the Federal Government to suspend the operation of the Sovereign Wealth Fund until all issues are resolved because it is unconstitutional,” the communiqué stated.

Consultative competition

Earnings above the budgetary benchmark price of crude oil, are expected to be transferred to the fund set up to replace the country’s excess crude account.

The governors agreed to support the UN initiative on consultative competition on the achievement of the MDG’sat state levels.

Electricity decentralisation

They also called for the de-regulation and de-centralisation of electricity generation.

The communiqué stated that the governors reached the decision after listening to a comprehensive presentation on the need to increase the supply of electricity and reduce regulatory bottle-necks by the Executive Chairman of the Nigerian Electricity Commission, Dr Sam Amadi.

Polio eradication campaign

The governors re-affirmed their commitment to the first polio eradication quarterly campaign in which most states participated.

They urged the states that were not able to participate in the programme to do so as soon as possible.

NAN/Shakira/Ekata

"A sovereign wealth fund (SWF) is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Some of them have grabbed attention making bad investments in several Wall Street financial firms including Citigroup, Morgan Stanley, and Merrill Lynch. These firms needed a cash infusion due to losses resulting from mismanagement and the subprime mortgage crisis. Most SWFs are funded by foreign exchange assets. "  -  Wilkipedia

Last modified on Monday, 22 August 2011 20:51

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