Categories: BusinessOn the GoTop Stories

IMF ranks Nigeria world’s ‘second worst’ in use of sovereign wealth fund

Oluseyi Awojulugbe

The International Monetary Fund has ranked Nigeria as the second worst country in the world in the use of sovereign wealth funds.

According to the Fiscal Monitor report released on Wednesday and seen by TheCable, Qatar was the only country worse than Nigeria on the index.

The Bretton Wood institution said the index was compiled using the corporate governance and transparency scores of the sovereign wealth funds and the size of assets as a percentage of 2016 GDP of the countries considered.

The fund said it used data compiled by the Natural Resource Governance Institute and Worldwide Governance Indicators.

“It is critical to develop a strong institutional framework to manage these resources—including good management of the financial assets kept in sovereign wealth funds—and to ensure that proceeds are appropriately spent,” the report read.

“This remains a significant challenge in many resource-rich countries that, on average, have weaker institutions and higher corruption

“The governance challenges of commodity-rich countries— that is, the management of public assets— call for ensuring a high degree of transparency and accountability in the exploration of such resources.

“Countries should develop frameworks that limit discretion, given the high risk of abuse, and allow for heavy scrutiny.”

Explaining that sovereign wealth funds have to be transparent, the IMF advised that countries should ensure that the natural resources of countries should be channelled properly to the people that need them.

Of the 10 African countries considered, Ghana was ranked the highest.

Recent Posts

  • Coronavirus Watch
  • On the Go

Daily recovery rate drops — lowest in 17 days

Nigeria's COVID-19 recovery rate recorded a significant drop on Sunday with less than 150 people discharged within 24 hours. This…

August 10, 2020 1:12 AM
  • On the Go
  • Top Stories

REVEALED: Buhari gave Salami panel 45 days to submit report on Magu

Four weeks after Ibrahim Magu, suspended chairman of the Economic and Financial Crimes Commission (EFCC), first appeared before a presidential…

August 10, 2020 12:48 AM
  • On the Go
  • Top Stories

Diezani: ‘Yahoo yahoo’ boys have become role models

Diezani Alison-Madueke, former minister of petroleum resources, has lamented how values are fast eroding in the society. Speaking at a…

August 9, 2020 11:52 PM
  • On the Go
  • Your Say

Social realism in Olukorede Yishau’s ‘Vaults of Secrets’

BY CHINAKA OKORO Olukorede S. Yishau’s ‘Vaults of Secrets’, a collection of short stories, is so realistic to life so…

August 9, 2020 10:00 PM
  • On the Go
  • The Nation

Obiano’s security aide stabbed to death

Azubuike Ekwegbalu, senior special assistant on security to Willie Obiano, governor of Anambra, is dead. Ekwegbalu was said to have…

August 9, 2020 9:53 PM
  • On the Go
  • Top Stories

PHOTOS: Obasanjo undergoes COVID-19 test

Former President Olusegun Obasanjo underwent COVID-19 test at his residence in Abeokuta, Ogun state capital, during the weekend. According to…

August 9, 2020 9:46 PM