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Nigeria drops to 3rd category in Sovereign Wealth Funds reclassification

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Nigeria drops to 3rd category in Sovereign Wealth Funds reclassification

An intentional rating agency, the Sovereign Wealth Funds (SWFs) has reclassified Nigeria among countries that have been grouped in the third category of the funds’ assessment, from the second group the country occupied in the past six years.

Nigeria is said to have lost some marginal growth marks between 2015 and 2016 as to be reclassified in the current rating of the body, contained in its report made available to Ripples Nigeria at the weekend.

Though this is seen as improvement from the anticipated further fall along the line, given the spate of allegation of mismanagement and corruption cases against government officials entrusted with managing public funds meant for improvement in living standard of its citizens.

A special study commission of SWFs and carried out by a Washington-based Peterson Institute for International Economics, assessed 60 funds and nine government pension funds, and scored them on: governance, structure, transparency, accountability and behavior.

The researchers said some countries including Nigeria made progress in transparency and accountability in 2007, but many still fall short of what the citizens and the international community expect of them.

The average score for the 60 countries under the study had Norway surpassing others with $888 billion SWF, having scored 98 percent and topping the scoreboard, followed by New Zealand’s 94 percent.

But surprisingly, Azerbaijan came third with a score of 92 percent, while two private fund administrators in Chile made the country to make it to the top 10.

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Nigeria increased its score from 58 percentage points to 76 percent along with countries in the third group, measuring in the third scoreboard, along with Equatorial Guinea and Libya.

“The little improvement on the part of Nigeria is simply because it was able to sustain some level of transparency and growth in its pension reform and fund management in related areas as published in 2013,” said the report.

Nine of the 21 funds recorded less than double-digit improvements by 2015, including the UAE’s Istithmar World and Russia’s National Welfare and Reserve Fund.

“A large number of funds fall short of what the citizens of their countries or the international community should expect from these funds, in particular the large funds, with regard to their transparency and accountability,” the Institute stated.
By Emma Eke….
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0 Comments

  1. JOHNSON PETER

    November 6, 2016 at 3:51 pm

    The Nigeria Sovereign Investment Authority is not managing the Nigeria sovereign wealth fund adequately, into which the surplus income produced from Nigeria’s excess oil reserves is deposited. Though it’s well understood as oil price is not stable in the international market.

  2. Amaka Okoro

    November 6, 2016 at 7:47 pm

    Hope is the only thing that can make Nigeria a better country because with hope we can get there

  3. yanju omotodun

    November 6, 2016 at 7:51 pm

    Our sovereign wealth will continue to drop as long we remain a mono cultural economy . is it only crude oil that can be in excess for sovereign wealth? Capital noo
    It’s high time we diversified the economy with action.

    • Nonso Ezeugo

      November 6, 2016 at 8:02 pm

      I agree with you our sovereign wealth we continue to drop until we look for the solution and make the economic better

  4. Amarachi Okoye

    November 6, 2016 at 7:53 pm

    We belong to the 3rd categories yet we have no show for it.shame to this country because we achieve nothing but failure

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