Sovereign Wealth Funds and Nigeria’s Economy (2012–2021)

Abstract

This study examined how Nigeria’s sovereign wealth funds has related to the economy: 2012-2021. The sovereign wealth fund is designed to build a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure, and providing stabilization support in times of economic stress, somehow stabilizing the local currency value. It seems that the sovereign wealth funds of Nigeria is not yet growing sustainably. Thus, this work seeks to ascertain how the sovereign wealth fund has related to economic growth of Nigeria. The study made use of secondary data sourced from the Central Bank of Nigeria and the Nigerian Sovereign Investment Authority. Using descriptive and scooping methods, the study showed that the total assets value of the Sovereign Wealth Fund (SWF) authority, the total assets value of the SWF group consolidated, the net profit of the SWF authority and the net profit of the SWF group consolidated have not reasonably influenced the economic growth of Nigeria. The work recommends amongst others that the government should be consistent in transferring excess crude oil revenue to the Fund; strategic partnership with investors with superior business intelligence is required; and the SWF Authority must promote accountability and transparency in the management of the funds.