Senate passes sovereign wealth fund bill
The fund is expected to serve as an investment catalyst to draw in other infrastructure investors
Article | 
The Senate has passed a bill to create a sovereign wealth fund. The bill was passed today, and it paves the way for the country to improve its management of windfall crude oil earnings. The House of Representatives must, also, pass the bill before a harmonised version is presented to President Goodluck Jonathan for assent.
The sovereign wealth fund is expected to replace Nigeria's excess crude account (ECA), a pillar of IMF-backed reforms launched in 2003 into which the OPEC member nation currently saves any oil revenue above a benchmark price set each year in the budget.
It is meant to save money for future generations, provide financing for needed infrastructure, and provide a stabilisation fund to the country’s economy against commodity price shocks.
The fund is expected to reduce our long-term economic reliance on oil revenues, insulate our country from commodity price shocks and serve as an investment catalyst to draw in other infrastructure investors.
Senate President, David Mark, said the passage of the bill is expected to secure Nigeria’s future.
"It is an extremely important bill and we hope its passage today and subsequent inauguration would secure the future of our generation and the generation unborn," he said.
Nigeria is one of only three OPEC member countries without a sovereign wealth fund. Finance Minister Olusegun Aganga has said the wealth fund will provide a firmer legal basis to protect Nigeria's savings than the Excess Crude Account.
President Jonathan is due to be sworn in for a new term on May 29 and will name a new cabinet following last month's General Elections. There had been fears the bill may not pass before then.
The sovereign wealth fund is expected to replace Nigeria's excess crude account (ECA), a pillar of IMF-backed reforms launched in 2003 into which the OPEC member nation currently saves any oil revenue above a benchmark price set each year in the budget.
It is meant to save money for future generations, provide financing for needed infrastructure, and provide a stabilisation fund to the country’s economy against commodity price shocks.
The fund is expected to reduce our long-term economic reliance on oil revenues, insulate our country from commodity price shocks and serve as an investment catalyst to draw in other infrastructure investors.
Senate President, David Mark, said the passage of the bill is expected to secure Nigeria’s future.
"It is an extremely important bill and we hope its passage today and subsequent inauguration would secure the future of our generation and the generation unborn," he said.
Nigeria is one of only three OPEC member countries without a sovereign wealth fund. Finance Minister Olusegun Aganga has said the wealth fund will provide a firmer legal basis to protect Nigeria's savings than the Excess Crude Account.
President Jonathan is due to be sworn in for a new term on May 29 and will name a new cabinet following last month's General Elections. There had been fears the bill may not pass before then.
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