Nigeria has been ranked number one in the first edition of the African Sovereign Wealth Fund Index, polling 62.49 percent to beat Rwanda (62.24 percent) and Ghana (62 percent) into the second and third positions respectively, according to the African Sovereign Wealth Fund Index report released by Konfidants Advisory Group.
The African Sovereign Wealth Fund 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 SWF Summit in Accra, the index’s indicators are governance and disclosure, size, domestic investment mandate and source of funding.
The African Sovereign Wealth Fund 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.
The Nigerian Sovereign Investment Authority (NSIA) has shows record of success with reference to the 2016 Linaburg-Maduell Transparency Index concluded by the Sovereign Wealth Fund Institute (SWFI) with the Nigerian Sovereign Wealth Fund (SWF) scoring 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. It tops the joint second category, which includes the United States (U.S.), France, South Korea, Malaysia, Brazil and the UAE.
The Linaburg-Maduell Transparency Index is an internationally-recognised method of rating the transparency of sovereign wealth funds around the world.
The ratings are based upon various criteria, including the disclosure of the policy and purpose of the SWF, its source of capital, a clear regulatory oversight, regular independently audited yearly reports, the establishment of ethical standards and clearly outlined strategies for investment and management compensation.
