THE Nigerian Sovereign Investment Authority Act came into being in May 2011.The law allows that some percentage of all money accruing to Nigeria from crude oil sales would be invested through three special funds ' the 'Nigeria Infrastructure Fund', the 'Future Generation Fund' and the 'Stabilisation Fund.' This belated law is only a few months old, yet virtually no arm or functionary of the Act has been constituted. The ink is hardly dry. But State Governors and apostles of profligate expenditures are already fully engaged to revise the Act and spend all receipts today!It would be very charitable to state that Nigeria is a latecomer to the Sovereign Wealth project. The truth is that the market had closed while the country was pondering over its tentative preparation. The governors' niggardly and unabashed struggling to delist the program is merely confounding an already embarrassing situation. If the governors' effort to scuttle the commencement of the project succeeds, they would have hastened Nigeria's descent into the arena of banana republics.The Governors need be reminded about the perspective of the proposal to midwife a sovereign funded portfolio Savings or Sovereign Wealth Fund (SWF). The context of the SWF is that in the last decade of 2000 to 2010, Nigeria had an opportunity that has today turned out to be of historic proportions, and which would have changed its present and future. A combination of crude oil windfall, fortuitous foreign exchange receipts and investment grade macroeconomic climatearising from an inspired debt relief all simultaneously existed in Nigeria, to facilitate a savings fund under international best practice rules that would leverage on the world of finance for specific infrastructure financing in Nigeria. In fact, it was within the legal framework of this same debt relief that Nigeria was obligated to spend the forgiven portion of the debts servicing in specified socially indexed sectors of our lives-Healthcare, Education, Water, etcWithout belabouring details of the comparative indices, Nigeria had necessary and sufficient conditions to launch into the Sovereign Wealth Fund program. Arguably- historians may confirm some day- the project unfortunately fell off the radar, possibly as another victim of a purported third tenure extension that dissipated concentration and the team spirit of that administration, causing the principal economic managers to be sidelined. It could well be Paradise lost, because the knotty issue today is that there is no repentance to profligacy of the Executive branch; a compromised or lacklustre Legislature cannot check or balance itself and then the unleashing of the prodigals hell bent on sharing every kobo in the Federation Account.Judging by the manner of discourse in the National Assembly, the National Economic Council, the Federal Executive Council, the declaration that the SWF contravenes Section 162 of the Constitution only points to the fact that the 1999 Constitution is not the perfection we may pretend it to be.Neither is it plausible that payment of the minimum wage at the States is inimical to the sustenance of the SWF. This option may not arise in the least if the average annual expenditure of N6billion per State under an opaque and ominous 'Security vote' subhead is deconstructed by the constitution, and then deployed for transparent public expenditure.Any contrivance to set the cats among the pigeons by allowing the Governors to swoop on the Federation Account or Excess Crude Account will extinguish the fragile elements of prudential fiscal management and our belated safeguard from the Dutch Disease.For that matter too, the vexed question of retention or removal of Subsidy on petroleum products represent a unique opportunity for aggressive fiscal management. When its bare details are published, it ought not be tailored to any group of Nigerians, but to the greatest good of the greatest numberThe Governors and other public servants should conduct an introspection of their government, and find from within, the resources to contend with governance and service. In these difficult economic times, we must live within our means. Being in public service is voluntary and should not be a license for profligacy. Ultimately, a nation is bound by the courage and integrity of her leaders, conditioned by their own fear or respect of the people.This country must stop the licentiousness of the ruling Class and prevent an invitation of the vast majority of Nigerians to penury, deprivation of quality education, infrastructure and the indices of progression in this century in spite of billions of Dollars accruing to the Federation Account.The meagre one billion seed capital should be paid up, and machinery of the SWF set up forthwith in accord with the Law duly passed in May.
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