Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Confab: CBN calls for inclusion of Sovereign Wealth Fund in the constitution

07 May 2014, 07:21

Abuja - The CBN has suggested to the National Conference Committee on Public Revenue and Finance to ensure that the country’s Sovereign Wealth Fund (SWF) was included in the constitution.

The acting Governor of CBN, Serah Alade, who was represented by Deputy Governor, Corporate Services, Alhaji Suleman Barau, gave the advice during a presentation to the committee on Tuesday in Abuja.

Alade said that the fund was intended to replace the Excess Crude Account (ECA), in order to provide long term savings for economic stabilisation, development of infrastructure and generational equity.

“The ECA has been criticised as a mere arrangement based on a memorandum of understanding among the three tiers of government, thus necessitating a need for constitutional backing for the SWF.”

“This is to provide for a stable longer time savings to address the country’s infrastructural challenges, provide stabilisation fund against the volatile in oil prices or revenue and ensure generational equity.”

She said that the country “can no longer afford to continue living from hand to mouth,” adding that public sector savings had become the norms for resource-rich and resource depended economy.

She said that countries such as Norway, Russia, Qatar, Iran, Kuwait, UAE, Botswana, Angola and Libya had used SWF to guard against negative effects of instability in commodity prices.

According to her, it will also ensure to cater for future generations.

The acting governor also identified imbalance in intergovernmental fiscal relationship, budgetary process, power of states and local government to borrow as some of the challenges to public finance management in Nigeria.

According to her, other challenges include over dependence on oil revenue, limited levels of economic activities, poor tax awareness, and prevalence of expenditure mind-set as well as neglect of revenue generation authorities.

 Speaking on the joint accounts of the local governments managed by the states, she proposed that the management of the accounts should reside with an Accountant-General created for that purpose.

She explained that the membership should be drawn from local governments and relevant ministries.

“The constitution should make it an impeachable offence if any state government fails to remit the stated amount from the internal revenue of the state into the joint accounts,” she said.

She urged the committee to entrench the Fiscal Responsibility Act (FRA) to cover all tiers of government.

“Although, an Act has been established at the federal level, it does not explicitly apply to the sub-national governments.”
“The state governments have in the past remained nonchalant to the provisions of the FRA.”

“Entrenching fiscal transparency and accountability at the federal level without states and local governments is simply scratching the issues of transparency and accountability,” she said.

The acting governor said the bank was very much interested in public finance and management because of its implications to the macroeconomics management.

-    NAN

For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...