It is worthy to note that within a very short time of existence, the NSIA is now rated second globally by Linaburg-Maduell transparency index administered by Sovereign Wealth Institute. This is a leap from its previous rank of joint 33rd. In the official statement announcing the second quarter ratings, the Institute singled out NSIA for special mention, stating that the NSIA has been upgraded to nine points out of a possible 10 from a score four in the previous rankings.
Linaburg-Maduell Transparency Index was developed at the Sovereign Wealth Fund Institute by Carl Linaburg and Michael Maduell, and is a method of rating transparency in respect to sovereign wealth funds.
In arriving at the rankings, the index among others considers the following transparency principles – the Fund provides history including reason for creation, origins of wealth, and government ownership structure, funds provides up-to-date independently audited annual reports, funds provides ownership percentage of company holdings, funds total portfolio market value, returns and management compensation, funds provides guidelines in reference to ethical standards, investment policies, and enforcer of guidelines, fund provides clear strategies and objectives if applicable, the fund clearly identifies subsidiaries.
The NSIA which was ranked alongside sovereign wealth funds from the USA, France, South Korea, Brazil, and Malaysia is the only African sovereign wealth fund so ranked. More significantly, the improved transparency ranking was due to NSIA’s commitment and adherence to the highest prescription of Santiago Principles with respect to corporate governance, investment strategy, disclosures and SWF best practices.
For a country that usually attracts negative ratings on many fronts, this positive ranking of our Sovereign Wealth Fund is remarkable and historic and should not be glossed over by any well meaning Nigerian.
For this major stride, we salute without reservation, the then Minister of Finance Olusegun Aganga who played a decisive role in the establishment of NSWF, and from the outset set up a structure and process that would make the Fund adhere to global best practices. We give credit also to the management team at the NSIA that has stood firmly in the path of excellence. We also recognize the efficient supervisory responsibility executed so far by the Federal Ministry of Finance under Ngozi Okonjo Iweala.
The major lesson to be learned from this NSIA’s latest positive ranking is that it pays to be committed to highest values with respect to corporate governance and best practices. If this commitment to transparency and best practices is replicated in other areas of country governance, Nigeria will soar high in many global ratings and the country’s reputation will improve remarkably with positive multiplier effects.
We seize this opportunity to urge the relevant authorities to continue to live up to the principles of transparency for which the NSWF is being rated and go beyond this towards ensuring the Nigeria’s Sovereign Wealth Fund serves the real objectives for which it was created.
http://reubenabati.com.ng/Positive-rating-of-Nigeria-acirc-s-Sovereign-Wealth.html
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