Minister for State for Petroleum Resources, Dr. Ibe Kachikwu, has said the Federal Government is considering plans to ‘lock up’ revenues realised from the oil sector and save them in the Sovereign Wealth Fund (SWF).
Kachikwu, who made the disclosure on Saturday at the unveiling of Heyden Petroleum’s mega petrol station in VGC, Lagos, said efforts were being made to convince President Muhammadu Buhari to buy into the idea in order to save for the future generation.
“We will convince the president to lock up every kobo we have in this country and put it in the SWF and spend something else, so that we can begin quite frankly. When I met with The Netherland Ambassador, he said, today, they have the highest sovereign wealth fund in the world and they have decided that whatever they have from oil, they are not going to spend it; instead they will save every penny of it and rely on the interest and other sources.’’
The SWF was created to manage and invest funds on behalf of the government. The fund, which started operations in October 2012, was set up with an initial $1 billion as seed capital, by the Nigeria Sovereign Investment Authority Act, which was signed in May 2011. Essentially, SWF was established to invest the savings gained on the difference between the budgeted and actual market prices for oil to earn returns that would benefit future generations of Nigerians.
ThisDay, December 25, 2016
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