Progress made on Nigeria's $1bn fund in Abuja

19/10/2011 - Abuja property & investment news Posted by Bob Brunskell
Progress made on Nigeria's $1bn fund in Abuja

Finance minister Ngozi Okonjo-Iweala has laid out a timeframe of a sovereign wealth fund (SWF) this week, which could safeguard the country's future.An initial $1 billion capital has been put into the fund, with accountants KPMG hired to manage the SWF.It is expected to be fully approved by president Goodluck Jonathan in December and will be split into three separate funds, the Nigeria Infrastructure Fund, the Future Generations Fund and the Stabilization Fund, Bloomberg reports.The purpose of the SWF is to safeguard some of the country's earnings from oil production from being plundered into the government's running costs. Instead, it will fund investments in infrastructure in Nigeria and protect it from rising oil prices.Speaking in Abuja, Ms Okonjo-Iweala said: "It is clear that given current challenges facing our economy and the global financial crisis, we cannot afford to waste any more time."What we have done can be compared to opening an account for the sovereign wealth fund and commencing with other necessary procedures in preparation for full implementation."