SOVEREIGN WEALTH FUND (SWFS): ANALYSIS OF THE MORAL A11) LEGAL SIDES OF THE NIGERIA SOVEREIGN INVESTMENT AUTHORITY (NSIA) ACT 2011.

By
PAUL OGHENERO OKUMAGBA Department of Sociology,
Delta State University, Abraka, Nigeria. E-mail:ghene_okumagba@yahoo.com
And
OKEREKA, ONOFERE PRINCEWILL
Department of Political Science Delta State University Abraka, Nigeria Email: onofereonline@yahoo.com

SUMMARY
In the last one year, the decision of the Nigerian Government to establish its version of the Sovereign Wealth Funds(SWF5) – the Nigerian Sovereign Investment Authority (NSIA) Act 2011, has attracted wide discussions in the investment and development literature in Nigeria. This paper critically examined the relevance of the NSIA regime in its merit and highlighted the possible hindrances that will adversely affect its operations in the extant economic environment in Nigeria. It specifically examined the moral and legal perspective arguments to the NSIA Act of 2011 against the backdrop of the accusation of grand corruption in the country. The paper relied on the conceptual analysis approach to anchor the explanatory relevance of the philosophy behind Sovereign Wealth Funds (SWFs), combined with the use of secondary data as a method of analyzing and reviewing relevant literature. Among other things, the paper revealed that although, the idea of Nigerian Sovereign Investment Authority (NSIA) conforms with modern international investment trend among other developed and developing countries of the world, its establishment without aligning it with existing constitutional provisions is a major obstacle. This is not unconnected with the renewed move by the Governors forum in dragging the Federal Government to the Supreme Court to determine whether the former has the right to keep other Accounts different from those known to the 1999 constitution. The paper recommends among other strategies the need for the Federal Government to be more enthusiastic and vigorous in its fight against corruption to free resources for development and discipline in budgetary management. These and appropriate constitutional provisions will provide the government with the template that will guarantee the solid economic base that can sustain the NSIA regime.

DOWNLOAD FULL RESEARCH

Posted in VOLUME 14 N0. (2) SEPTEMBER 2012.

Leave a Reply

Your email address will not be published. Required fields are marked *