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Lawmakers Canvass for Sovereign Fund to be Domiciled in Nigerian Banks

By on June 1, 2012

The House of Representatives have taken another bold step in the interest of the Nigerian economy by demanding an end to the practice of lodging excess proceeds from crude oil sales in foreign accounts.

To the detriment of the economy, the Nigerian government hands sovereign funds to multi-national banks like Goldman Sachs to invest on the behalf of the country. Libya entrusted Goldman Sachs with billions of its petro-dollars in 2008, and the bank lost 98% of that money.

Representatives at their sitting yesterday resolved to set up a joint committee to investigate the practice and map out strategies for a working Sovereign Wealth Fund mechanism.

The motion was sponsored by Aminu Suleiman (PDP, Kano).

Speaking in support of the motion, Leo Ogor (PDP, Delta) said, “The concept behind creating this fund is wonderful, but we must be able to build our banks and strengthen our economy by keeping our money or funds of the federation in our banks.

“The economies of countries abroad would expand and get better by the action of government while that of Nigeria would continue to shrink. This nation, right from independence has witnessed funds stashed in foreign accounts only for those countries to use the money to develop their economies to our detriment.”