Sowing Into the Future

Some of you may recall that on the 20th of April, 2010, the National Economic Council under my leadership approved the setting up of a National Sovereign Wealth Fund to secure Nigeria’s future growth.

Some of you may recall that on the 20th of April, 2010, the National Economic Council under my leadership approved the setting up of a National Sovereign Wealth Fund to secure Nigeria’s future growth. It was further approved that $1 billion be set aside for the fund as seed money.Today, I am deeply pleased that the National Assembly passed the Sovereign Wealth Fund Bill into law on the 17th of May, 2011 and I thank our Federal Legislators for this patriotic act.

Many of you may have heard about this fund and wonder what it is. Since it is meant for you, I will now take time to explain what this fund is and how it applies to you the Nigerian citizen.The Sovereign Wealth Fund is a vehicle for growth that this administration conceived of to secure additional capital for growing Nigeria’s infrastructure and putting aside money for the rainy day so that future generations will always have something to fall back on in the event that revenues are impacted by market forces which have been known to be volatile.

Last year, Nigeria was fortunate to have engaged in prudent spending which enabled us survive the world economic recession of 2010 and which enabled us to save our banking sector via the Asset Management Company of Nigeria (AMCON). But my concern for future generations is such that I do not want us to rely on just good fortune. I want us to rely more on plans and preparations guided by prudent management of resources.

This is the reason why I ensured that the body which will administer the Sovereign Wealth Fund, the Nigerian Sovereign Investment Authority (NSIA), may ONLY make withdrawals from the fund for investment or infrastructural purposes. Withdrawals will NEVER be made to cater for revenue shortfalls for any tier of government. Governments must learn to make do with available resources or creatively find ways to generate more resources because a good father leaves an inheritance for his children. GEJ