Categories: BusinessOn the GoTop Stories

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

Author:
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

  • General
  • On the Go
  • Top Stories

CAN asks FG to declare Miyetti Allah a terrorist organisation

The Christian Association of Nigeria (CAN) has asked the federal government to declare the Miyetti Allah Cattle Breeders Association of…

4 mins ago
  • On the Go
  • Top Stories

EFCC: Transparency International has a hidden agenda against Nigeria

The Economic and Financial Crimes Commission (EFCC) has rejected Transparency International’s (TI) report which ranked Nigeria low on how corruption…

17 mins ago
  • On the Go
  • TheCable Special
  • Top Stories

FULL TEXT: The supreme court verdict that sacked Ihedioha

The supreme court judgment on the sack of Emeka Ihedioha as governor of Imo state generated a lot of controversies.…

2 hours ago
  • International
  • On the Go
  • Top Stories

US targets pregnant women, says no more visa for childbirth

The United States says it will no longer issue visas to foreigners who want to give birth in the country.…

2 hours ago