Nigeria tops African Sovereign Wealth Fund ranking
Nigeria has been ranked number one in the first edition of the African Sovereign Wealth Fund Index, polling 62.49 % to beat Rwanda (62.24 %) and Ghana (62 %) into the second and third positions respectively, according to the African Sovereign Wealth Fund Index report released at the weekend.
4, Angola, ( 56.57%), 5, Gabon (47.17%.), 6, Morocco (38.92%)
The index, which measures the size and other variables of the existing 12 Sovereign Wealth Funds (SWFs) on the African continent, put the total assets of these SWFs at about $89 billion.
Launched by the Konfidants Advisory Group during the Africa Sovereign Wealth Fund Summit in Accra, the index’s indicators are governance and disclosure, size, domestic investment mandate and source of funding.
The index seeks to establish how transparent and accountable African sovereign wealth funds are by assessing the soundness of their governance structure as well as the level of the public financial disclosure on them.
Nigeria’s sovereign wealth fund is managed by the Nigeria Sovereign Investment Authority (NSIA) which was set up in 2011 to manage funds in excess of budgeted oil and gas revenues. The Authority is empowered to receive, manage and invest funds in a diversified portfolio of medium and long term assets on behalf of the Federal Government, State Governments, Federal Capital Territory, and Local Governments Area Councils in preparation for the eventual depletion of Nigeria’s hydrocarbon resources.
It will be recalled that Nigeria’s sovereign wealth fund has also been highly ranked by the Linaburg-Maduell Transparency Index.
The Linaburg-Maduell Transparency Index, the internationally-renowned analyst of sovereign wealth funds, was developed at the Sovereign Wealth Fund Institute in 2008 by Carl Linaburg and Michael Maduell.
In its 2015 and 2016 reports, the institute declared that Nigeria’s SWF scored nine out of 10 points, earning its rank in the league of the top rated global sovereign wealth funds in terms of compliance with international best practices.
Sources: New Telegraph | JIC Media
Gideon Goldmann LLC
6 年I am not moved by such statements. The end point is how this is translated positively into the life of the common man
CEO @ Teece Connection Ltd | Strategic Expert in Auctions, Acquisition, and Recycling
6 年Sounds great. But how does it signify positives in Nigeria?
Founder and Managing Director at Tiom Consulting|Board Member
6 年I applaud Afrochampions for launching the African Sovereign Wealth Fund Index, this great initiative will put accountability in the management of these Funds to help move Africa beyond aid, however I disagree with their rankings, echoing Ayet Mkpo's comments above. Besides Botswana and Rwanda who have been using their funds for savings, most countries have been using their funds as stabilizing funds, with lukewarm success. * The NSIA has been more talk than action for the past three years. * Fundo Soberano de Angola, handed billions of dollars to Quantum Global, who have done minimal investment , their $450 million Healthcare fund is sitting there with no idea on how to invest. * Ghana’s twin funds (for savings and stabilisation) has not stop the government from a borrowing binge at high interest costs, what's the point of buying foreign equity, while you can't invest in proper schools? * Senegal's Fonsis lack a clear implementation of their domestic strategy. The funding gap for public-private partnership infrastructural projects?is growing, the investment of revenues from oil, gas and minerals needs to be invested in instruments which will safeguard not only the future generations, but the current as well.
Executive Director
6 年Some of these rankings are based on data of doubtful value and really are of no relevance to the citizens as regards their standard of living.