A review of the $1 billion seed capital contributed by the three tiers of Government to the Sovereign Wealth Fund (SWF) has shown that Akwa Ibom, Rivers and Delta States made the highest contributions among the 36 states of the federation.
Vice-President Namadi Sambo, last week, presented certificates of contribution to the Federal, State and Local Governments, while inaugurating the council. But the actual contribution by the Federal, respective States and Local Governments was not disclosed.
The Nigeria Sovereign Investment Authority (NSIA) oversees the management and investment of the SWF.
The SWF, which at the moment operates side by side the Excess Crude Account (ECA), has three ring-fenced windows. These are the Future Generations Fund, Nigerian Infrastructure Fund and Stabilisation Fund, which each get 20 per cent of the total sum, while the allocation of the outstanding 40 per cent would be determined by the board and management based on macroeconomic variables.
A breakdown of the ownership of the fund, which was arrived at using the revenue allocation formula for the distribution of funds accruable to the Federation Account, showed that a total of $362,464,000 is held by the 36 states.
The amount is made up of $232,464,000 belonging to the 36 states and $130,000,000 belonging to the nine oil-producing states, based on 13 per cent derivation.
The $362,464,000, when added to $179,220,000 that belongs to all the 774 Local Government Areas in the country, brings the total amount held by the states and Local Governments to $541,684,000.
In percentage terms, the States and Local Governments combined, own 54.2 per cent of the fund.
However, the Federal Government and the Federal Capital Territory (FCT)’s ownership of the $1 billion is $458,316,000 or 45.8 per cent of the fund.
The report showed that with a total contribution of $55,133,578.23, (inclusive of the amount contributed by its Local Governments), Akwa Ibom is the highest contributor to the SWF. Akwa Ibom was closely followed by Rivers State with a contribution of 4.8 per cent or $48,061,405. 68, while Delta State contributed $36,530,402.19 to the SWF.
Sambo, who represented President Goodluck Jonathan when the certificates were distributed last week, had expressed satisfaction with the governance of the fund as well as its investment structure.
“Sovereign Wealth Funds all over the world have been instrumental to fiscal discipline and development of the countries in which they exist. “Our collective furnishing of the fund is reinforced by the presentation of certificates of contribution for Federal, States and Local Governments, and I urge all Nigerians and officials at all levels of Government to give their full support to the NSIA to ensure that its objectives are speedily realised for the benefit of all Nigerians,” the Vice- President had said.
He revealed that with effect from this month, 5,000 more qualified elderly citizens of the state are to be included in his administration’s Social Security Scheme (SSS).
In addition, hope for an improved electricity supply (17%) and security (9%) were among the five most important issues that Nigerians wants government to address in the next one year.###
