Enhancing Infrastructural Growth in Nigeria: The Sovereign Wealth Fund Strategy

Abstract

The establishment of the Nigerian Sovereign Wealth Fund (NSWF) with seed
capital of $1 billion is by far one of the most significant economic policy decisions taken in recent times. Contrary to expectations, the significant of this decision is not in terms of the monetary implications of the decision. But rather, in terms of what it says about the level of economic and fiscal discipline that the Government at all levels in Nigeria wish to bring to bear on the process of sovereign resource management. Nevertheless, this review believes that the three core mandate given to the fund to pursue concurrently is a bit ambitious and duplicatory of roles performed by the foreign reserve and excess crude account among others. It recommends the pursuance of infrastructural development only for a period of at least ten years, due to its accelerative effect on economic growth and development,
through increased productivity and economic competitiveness in the global
market.