The International Monetary Fund (IMF) has rated the Nigerian Sovereign In- vestment Authority (NSIA) high, saying the agency has worked to ensure transparency, good governance, ac- countability and prudent investment practices.
In clarifying IMF’s position on Nigeria’s Sovereign Wealth Fund (SWF), its Senior Resident Representatives and Mission Chief for Nigeria, Mr. Amine Mati, said: “In view of re- cent local media reports, I would like to clarify that the reference to the Sovereign Wealth Fund (SWF) included in Figure 1.16 of the IMF’s Fiscal Monitor showing a low ranking for Nigeria does not refer to the Nigerian Sovereign In- vestment Authority (NSIA).
“The NSIA is Sovereign Wealth Fund that has worked extensively with development partners to ensure it is applying transparency practice that are aligned with the Santiago Principles of transparency, good governance, account- ability and prudent investment practices.
“The figure in the IMF Fiscal Monitor reports, a score prepared by the Natural Resources Governance Institute (NRGI), which assesses the corporate governance and transparency of SWFs around the world using a methodology out- lined in the referenced NRGI publication. For Nigeria, that SWF reference focuses on the Excess Crude Oil account, which requires greater transparency on the rules governing deposit, withdrawals and investment.” In a related development, the IMF said NSIA was doing a good job in management of SWF.
According to IMF Director, African Department, Abebe Selassie, while speaking at the presentation of the regional economic outlook: Sub-Saha- ran Africa section of the World Bank/ IMF Spring Meetings in Washington D.C, “I want to be precise on this issue because I have seen a lot of noise concern- ing it. There has been two Sovereign Wealth Funds in Nigeria. There has been the Excess Crude Account (ECA), and the Nigeria Sovereign Investment Authority (NSIA). The NSIA has been run transparently and based on standard best practice and it has been do- ing a good job.”