The former Nigerian Finance Minister, Olusegun Aganga, has said there are many assets belonging to Nigeria ministries, agencies and departments that are not managed actively.
Aganga disclosed this at a webinar organized by EY Nigeria Alumni on Thursday evening. He adds that the country needs to take decisive actions in growing and diversifying its economy.
He says, “As a country, we do have so many assets held by different MDAs that are not actively managed. I am not even sure we have a comprehensive list of those assets.
“This is a role that can be dedicated to the Nigerian Sovereign Wealth Fund. The NSIA needs a stronger political will from the government to deliver fully on its mandate.”
The former minister says the impact of COVID-19, the high level of unemployment and poverty, the high debt, and uncontrolled population growth are compelling reasons for the country to make the right decisions.
In his words, “More than ever, the time to be bold, to take decisive action, to strengthen, to grow and diversify the economy and to empower the NSIA to play its critical role is now.
“Our population is growing faster than our economy, and that only means one thing: more poverty, with social unrest as a possible result. We can do something about it now.”
According to him, the SWF plays prominent roles in the global financial system.
“The largest funds are held by resource-rich countries and these are Asian economies. Sovereign Wealth Funds in several countries have economic diversification as a mandate in addition to providing an additional buffer against commodity risks.
“Contrary to what most people say or think, the NSIA, which is our own sovereign wealth fund, is not just a savings and stabilization thing. It was meant to be a tool for economic diversification and development.”
He says in efforts to develop and diversify the economy, the NSIA is expected to serve as a catalyst for attracting additional local and foreign investments.
He says, “The NSIA has the ability to invest in developmental projects; its subsidiaries or affiliates can issue bonds or other debt instruments or raise finance from outside sources.
“I recall that when we were setting up the NSIA, some of the governors opposed it at the time and said that there was no need to save for the rainy day. I would say the rainy days are now here with us.”
The former Minister of Industry, Trade and Investment stresses the need for civil service reform, adding that it is the backbone of any government.
He notes that the current civil service is currently over-bloated, saying that the civil servants are being less paid than a living wage and ill-equipped.
