Lagos State Governor, Mr. Babatunde Fashola (SAN), Monday reiterated that Nigeria’s Sovereign Wealth initiative was unconstitutional noting that he would receive the Shareholders Certificate of the Fund presented to him by the management of the fund only as an acknowledgement that the State’s fund was being held somewhere.
In his remarks while welcoming officials of the Nigeria Sovereign Wealth Authority led by their Chairman, Mr. Mahey Rasheed, Governor Fashola said it was necessary to put on record that he never supported the initiative.
“I don’t think it accurately sets the record to say that I supported it. Some of my colleagues supported it and for reasons best known to them but I do not support it and I made this very clearly well known when the discussions were on the way”, the Governor said.
According to him, “I must be clear, I do not support it not because I am against savings; I disagree because for me there are fundamental and constitutional issues”. He added that the countries given as examples to support the initiative did not match the Nigerian situation explaining that while those countries are either monarchies or emirates, Nigeria is a democracy.
http://pmnewsnigeria.com/2013/10/28/fashola-why-i-oppose-sovereign-wealth-fund/

I was here!

I was going to say he seemed pretty childish but there's one statement that can't be argued with:

"Why are we saving for for infrastructure, when our infrastructure is already outdated?"

A country needs a contingency fund, that's true, but Nigeria needs infrastructure, not in 20 years, but now.

Controversy: Lagos State Governor, Mr. Babatunde Fashola (SAN), Monday reiterated that Nigeria’s Sovereign Wealth initiative was unconstitutional noting that he would receive the Shareholders Certificate of the Fund presented to him by the management of the fund only as an acknowledgement that the State’s fund was being held somewhere.
In his remarks while welcoming officials of the Nigeria Sovereign Wealth Authority led by their Chairman, Mr. Mahey Rasheed, Governor Fashola said it was necessary to put on record that he never supported the initiative.
“I don’t think it accurately sets the record to say that I supported it. Some of my colleagues supported it and for reasons best known to them but I do not support it and I made this very clearly well known when the discussions were on the way”, the Governor said.
According to him, “I must be clear, I do not support it not because I am against savings; I disagree because for me there are fundamental and constitutional issues”. He added that the countries given as examples to support the initiative did not match the Nigerian situation explaining that while those countries are either monarchies or emirates, Nigeria is a democracy.
http://pmnewsnigeria.com/2013/10/28/fashola-why-i-oppose-sovereign-wealth-fund/

And Democracies don't need to save especially since there are bogus toll gates and concessions to be bought back isn't that so Raji? Common sense among Nigeria's public office holders seems to be hurriedly heading the way of the Dodo!

Ki-Katanga:
I was going to say he seemed pretty childish but there's one statement that can't be argued with:

"Why are we saving for for infrastructure, when our infrastructure is already outdated?"

A country needs a contingency fund, that's true, but Nigeria needs infrastructure, not in 20 years, but now.

What percentage are we trying to save and what percentage are we already 'squandering'? Did you think of that?

yelsew80:

What percentage are we trying to save and what percentage are we already 'squandering'? Did you think of that?

Equally important is "how much are we already spending on servicing debt?" and "How much are we currently losing due to poor infrastructure?" and "how much do we currently waste on some of the most expensive fuel in the world?"

All valid questions, but it stands to reason that not getting on with projects that have to be implemented doesn't save money, it costs it.

Sovereign wealth fund.
Aha.
Naija go cry.
Most of that fund will go toward paying fees and deductions by fund managers and brokers in western banks.
By the ways,
WHO SAVES MONEY WHILE HIS ROOF IS LEAKING?

Ki-Katanga:

Equally important is "how much are we already spending on servicing debt?" and "How much are we currently losing due to poor infrastructure?" and "how much do we currently waste on some of the most expensive fuel in the world?"

All valid questions, but it stands to reason that not getting on with projects that have to be implemented doesn't save money, it costs it.

Your line of argument is valid but unfortunately, terribly flawed. Raising the debt issue is just leaning on sentiments. If Nigeria was earning thrice as much as it currently is earning, we would still have to borrow and repay debts! Why? you may ask, well that's simply because it makes economic sense. I dare to say no country can operate effectively without some level of debt. We could go into the economics of it if you like.

What we are currently loosing by not consuming an extra 2% or so of our total income would pale a hundred fold if compared with what we stand to lose by not saving that meagre 2% if there's an economic shock in the near future. It's the same wretched mentality (No offence) that's making ASUU demand for ridiculous allowances - Nigeria get money - without realizing we are all storing up problems for ourselves in the very near future. Just over a decade ago the natural price of a barrel of Oil was hovering between 10 - $16, if that happens again do you realize the financial mess Nigeria would be in? You think it's impossible right? Well think again!

.

Word from the main man.
When the fundermental laws of the land are not respected by those who are suppose to be the custodian of the land,
You get Nigeria

Problem is,is the Sovereign Wealth Fund safe? Because the way I see the average Nigerian politician's mentality,I'm afraid that fund is open to massive looting and embezzlement.

yelsew80:
Your line of argument is valid but unfortunately, terribly flawed. Raising the debt issue is just leaning on sentiments. If Nigeria was earning thrice as much as it currently is earning, we would still have to borrow and repay debts! Why? you may ask, well that's simply because it makes economic sense. I dare to say no country can operate effectively without some level of debt. We could go into the economics of it if you like.

What we are currently loosing by not consuming an extra 2% or so of our total income would pale a hundred fold if compared with what we stand to lose by not saving that meagre 2% if there's an economic shock in the near future. It's the same wretched mentality (No offence) that's making ASUU demand for ridiculous allowances - Nigeria get money - without realizing we are all storing up problems for ourselves in the very near future. Just over a decade ago the natural price of a barrel of Oil was hovering between 10 - $16, if that happens again do you realize the financial mess Nigeria would be in? You think it's impossible right? Well think again!

the sovereign wealth fund was created to replace the excess crude account which was unconstitutional in the first place.the argument of SWF acting as a buffer against an economic recessions falls flat in the face of the fact that we already have our foreign reserves with amount nearing 50billion dollars.why should we then have another fund to save into when funds are badly needed for development?countries like saudi arabia that operate SWFs are monarchies where rulers are the absolute power.besides such countries already have well maintained infrastructure and many a time have the SWF in place of a foreign reserve.it is simply out of place for nigeria to have a ssovereign wealth fund when so many sectors of the economy require funding.rather than leeping that additional 2%,why not aim that 2% towards the educational sector?there are so many funds in this country into which billions have been placed without any positive impact.by now,the ecological fund should have billions in it yet we still hear states seeking assistance with flood relief and individuals donating.the 50k per litre on each litre of fuel is there and so many others.before been scrapped,the excess crude account had in excess of 33billion dollars which didnt translate to any meaningful development.why should we start on a journey we already know wont lead us to anywhere?

yelsew80:
Your line of argument is valid but unfortunately, terribly flawed. Raising the debt issue is just leaning on sentiments. If Nigeria was earning thrice as much as it currently is earning, we would still have to borrow and repay debts! Why? you may ask, well that's simply because it makes economic sense. I dare to say no country can operate effectively without some level of debt. We could go into the economics of it if you like.

What we are currently loosing by not consuming an extra 2% or so of our total income would pale a hundred fold if compared with what we stand to lose by not saving that meagre 2% if there's an economic shock in the near future. It's the same wretched mentality (No offence) that's making ASUU demand for ridiculous allowances - Nigeria get money - without realizing we are all storing up problems for ourselves in the very near future. Just over a decade ago the natural price of a barrel of Oil was hovering between 10 - $16, if that happens again do you realize the financial mess Nigeria would be in? You think it's impossible right? Well think again!

Debt in itself is not bad; Debt is only bad when you have debt without capital.

Nigeria's debt has no tangible assets associated with it. If Nigeria goes another ₦15 Tn in debt but ends up with good secular academic schools, stable electricity and a good railway or two, it would be money well spent.

Sometimes, its just shocking when I hear Nigerians talk about certain issues with so much venom without actually having a clue about what they are talking!
The ECA is an account designed by the OBJ govt to capture the difference between the budgeted price of crude and the actual amount it's sold. Since it makes financial sense to budget for less than the expected price in a financial year, the ECA is destined to swell with "unbudgeted" funds which are then shared by the 3 tiers of govt as "extra unbudgeted income" usually squandered in no time.
The SWF ( it was called that simply for want of a better name) was designed to curb the successive waste of such funds by saving a portion of it (initially just $1billion). Now this is very important, this money wont necessarily sit in some bank account waiting for future generations to claim it, it's going to be invested in a variety of areas by appointed managers including in infrastructure, lent out to other willing investors locally and ultimately become a very important source of long term funds for investors comparable to pension funds but with potentially higher amounts. The difference here is that whatever profits are made wont go to the government but would be further saved as part of our contribution to future generations. But considering the benefits we stand to gain as a nation through the availability of such long term funds - which had for so long been a drag on local investments as huge capital outlays required by the private sector for long term financing could only be gotten from outside the country, what do we really loose in the present besides denying wasteful govts more funds to squander and giving this badly needed funds to those that actually need it for sensible investments?
Now what on earth is wrong with such a noble idea? Constitutionality? How constitutional is the ECA? Nigerians are just impossible.

Bump

Is Fashola smbodi's name?

fashola please your attention is needed at the national conference, come and pour out your soul. U can thank me later for helping u realise that it is needed