OSLO (Reuters) - Everyone in Norway became a theoretical crown millionaire on Wednesday in a milestone for the world's biggest sovereign wealth fund that has ballooned thanks to high oil and gas prices.

Set up in 1990, the fund owns around 1 percent of the world's stocks, as well as bonds and real estate from London to Boston, making the Nordic nation an exception when others are struggling under a mountain of debts.

A preliminary counter on the website of the central bank, which manages the fund, rose to 5.11 trillion crowns ($828.66 billion), fractionally more than a million times Norway's most recent official population estimate of 5,096,300.

It was the first time it reached the equivalent of a million crowns each, central bank spokesman Thomas Sevang said.

Not that Norwegians will be able to access or spend the money, squirreled away for a rainy day for them and future generations. Norway has resisted the temptation to splurge all the windfall since striking oil in the North Sea in 1969.

Finance Minister Siv Jensen told Reuters the fund, called the Government Pension Fund Global, had helped iron out big, unpredictable swings in oil and gas prices. Norway is the world's number seven oil exporter.

"Many countries have found that temporary large revenues from natural resource exploitation produce relatively short-lived booms that are followed by difficult adjustments," she said in an email.

The fund, equivalent to 183 percent of 2013 gross domestic product, is expected to peak at 220 percent around 2030.

"The fund is a success in the sense that parliament has managed to put aside money for the future. There are many examples of countries that have mot managed that," said Oeystein Doerum, chief economist at DNB Markets.

Norway has sought to avoid the boom and bust cycle by investing the cash abroad, rather than at home. Governments can spend 4 percent of the fund in Norway each year, slightly more than the annual return on investment.

Still, in Norway, oil wealth may have made the state reluctant to make reforms or cut subsidies unthinkable elsewhere. Farm subsidies allow farmers, for instance, to keep dairy cows in heated barns in the Arctic.

It may also have made some Norwegians reluctant to work. "One in five people of working age receives some kind of social insurance instead of working," Doerum said, despite an official unemployment rate of 3.3 percent.

(Reporting by Alister Doyle; Editing by Alison Williams)

Nigeria started producing and exporting crude oil almost a decade before Norway started and here we are, every Norwegian is a millionaire in Norwegian currency while Nigerians doesn't know their left from their right. Does it mean that Socialism is slightly better than capitalism because capitalism seems to be failing America. Or is it because America spends fortune in fanning and settling troubles in other countries and spend alot generally. No need of mentioning Nigeria because ours is a serious paradox.

Nigeria is not a sane nation - case closed

More than 50 years wasted since the first discovery of oil in Oloibiri in 1956. Why me (us)...

.

Nigeria has 170million people and Norway has 5 million and both produce about same quantity of oil. Their infrastructure has been built up fully even before the oil came.

To put things in better perspective, imagine all the oil in Nigeria belonged to say Cross river State only.

There is no point comparing both.


That doesn't excuse the fact that Nigeria is a thieving mess but only buttresses the point that oil shouldn't be used to point Nigeria's failures as most countries that progressed didn't do so on the back of oil wealth.

PapaBrowne: Nigeria has 170million people and Norway has 5 million and both produce about same quantity of oil. Their infrastructure has been built up fully even before the oil came.

To put things in better perspective, imagine all the oil in Nigeria belonged to say Cross river State only.

There is no point comparing both.

The comparison cuts across countries of the world including US. Nigeria is just a speck.
Here are some comments from people in Yahoo..
J M 4 hours ago
The Norwegians can thank their lucky stars for having a prudent & responsible government to look after their country's wealth. In my country, we too have oil but nothing is transparent as our state oil is only answerable to the government leaders. All we ordinary citizens can know is that they often use the oil money to bail out the failing companies runned by their cronies. To the extend of exactly how much were wasted or had gone down in their pockets, nobody knows.

Donnie 4 hours ago
it's amazing how much wealth a nation can build up when its not spending all its money on rebuilding the other nations it invades.
im not liberal and im not conservative...I'm simply an American that's sick and tired of seeing my country spend my hard earned money on the rest of the world's problems and then turning around and telling me that they need to tax me more and that I am "unAmerican" for not wanting to pay more in taxes.

e w 2 hours ago
Instead of giving cronies and corrupt foreign government officials billions, the government of Norway keeps Norwegian money in their own country, and they have a surplus.We could have such a surplus here, while helping our own American citizens, but out politicians give away the wealth of our nation all over the globe, and to their cronies.
We have the most corrupt government in the history of our nation; both parties are hopelessly corrupt, and they have no intention of changing. It's "business as usual" in D.C.Vote the rascals out of office; both Democrooks and Republidrooks!

Corruption, ethnicity and celebration of mediocrity have killed us. Are we not all supposed to be millionaire by now (mind you not in Zimbabwe currency)

...see correct people...


scandinavians...ever forward thinking...not caught up


in the pettiness of international power play..


I pray a similar fate for the children of Oduduwa

PapaBrowne: Nigeria has 170million people and Norway has 5 million and both produce about same quantity of oil. Their infrastructure has been built up fully even before the oil came.

To put things in better perspective, imagine all the oil in Nigeria belonged to say Cross river State only.

There is no point comparing both.


That doesn't excuse the fact that Nigeria is a thieving mess but only buttresses the point that oil shouldn't be used to point Nigeria's failures as most countries that progressed didn't do so on the back of oil wealth.

The argument of clowns and failures who do not want progress

Meanhwhile, we've wasted $16bn on power under OBJ, widened the rich-ppor gap whilst managing to hold a very inefficent democratic regime, been given dull air by Jonathan, and a mediocre performance in Lagos is hailed as excellent. Nigeria has a long way to go. There's still hope though.

Uyi Iredia: Meanhwhile, we've wasted $16bn on power under OBJ, widened the rich-ppor gap whilst managing to hold a very inefficent democratic regime, been given dull air by Jonathan, and a mediocre performance in Lagos is hailed as excellent. Nigeria has a long way to go. There's still hope though.

Do you think we have started? I think we are still swirling around a circle without any significant push forward. What a confused nation!

Uyi Iredia: Meanhwhile, we've wasted $16bn on power under OBJ, widened the rich-ppor gap whilst managing to hold a very inefficent democratic regime, been given dull air by Jonathan, and a mediocre performance in Lagos is hailed as excellent. Nigeria has a long way to go. There's still hope though.

This malicious misinformation must stop! OBJ didn't waste or squander N16bn, it is the said cost of NIPP which was initiated and almost fully funded by him. Do you think the new power stations and infrastructures of NIPP being commissioned by UMY and GEJ were funded under CAPEX ? Please read up and learn. Stop peddling that lazy lie.

homerac7:

This malicious misinformation must stop! OBJ didn't waste or squander N16bn, it is the said cost of NIPP which was initiated and almost fully funded by him. Do you think the new power stations and infrastructures of NIPP being commissioned by UMY and GEJ were funded under CAPEX ? Please read up and learn. Stop peddling that lazy lie.

One of the many reasons why we will continue like this. Justifying the unjustifiable. can you imagine the amount of money ($16B) wasted with such insignificant impact on power in Nigeria. Let's stop the way we are doing things and see if we can wriggle out of our present quagmire. Call a spade a spade!

I beg con give me visa?

The learning here is the success of the Norwegian sovereign wealth fund. The very idea our greedy governors continually kick against.

bloggernaija:

The argument of clowns and failures who do not want progress

I was expecting you to address his points, rather than call him a "clown" or "failure".

chris4gold: I beg con give me visa?

Sorry Andrew! Nobody is permitted to check out.

Strange!

Pro Anti: The learning here is the success of the Norwegian sovereign wealth fund. The very idea our greedy governors continually kick against.

Ethnicity, corruption and mediocrity is our main nemesis.

EagleNest:
One of the many reasons why we will continue like this. Justifying the unjustifiable. can you imagine the amount of money ($16B) wasted with such insignificant impact on power in Nigeria. Let's stop the way we are doing things and see if we can wriggle out of our present quagmire. Call a spade a spade!

No, it's the gross ignominy you are projecting here that is the bigger problem. It is obvious that you have never done any qualitative objective research on issues of electricity in Nigeria pre-NIPP, intra-NIPP and present. If you know the details of NIPP, you will never ever claim that $16bn went down some imaginary drain. By the way, the investment on NIPP to date is in excess of $20bn. I hope it is still a wasted sum to you. Get knowledge bro.

Pro Anti: The learning here is the success of the Norwegian sovereign wealth fund. The very idea our greedy governors continually kick against.

I was about to make the same point before I read your post.

I remember Amaechi's Governors' Forum was at the vanguard of opposition against the SWF. Now, what does that tell us?

@ Topic,

The truth is that Scandinavia is heaven on earth. Not because of the so-called oil or other natural endowments, but because of the quality of human beings they have - who they are as a people. This surreal reality is the same from Norway to Sweden, to Denmark, Luxemburg, and the rest. We can blame our political leadership in Nigeria (and by extension, Africa) from now until eternity, but the problem is not one of leadership. After all, a people always get the government they deserve.

Narrow-minded parochialism, tribalism, ethnocentrism, nepotism, favouritism, and all the other negative 'isms' are what defines us as a people. That is why things might never work, at least not in our generation.

The incumbent president and his team can only try to lay the foundations for a national reawakening that might usher in a new way of doing things, but the success of such a plan ultimately depends on ordinary Nigerians. I honestly do not feel too optimistic, considering that the average Nigerian I encounter daily does not seem ready to discard business as usual, and would readily exploit any situation for personal/familial/clannish advantage. . . .the same way their leaders at every level have ravaged the country since Independence.

It's a tragedy.

homerac7:

This malicious misinformation must stop! OBJ didn't waste or squander N16bn, it is the said cost of NIPP which was initiated and almost fully funded by him. Do you think the new power stations and infrastructures of NIPP being commissioned by UMY and GEJ were funded under CAPEX ? Please read up and learn. Stop peddling that lazy lie.

You are right but for 2 infractions. 1st, OBJ did not almost fully pay d NIPP funds; he only released around $3bn b4 leaving office. 2nd, Yar'adua NEVER commissioned any NIPP project (whether Generation, Transmission or Distribution); almost all d work and all d commissioning have been done under GEJ..

Pro Anti: The learning here is the success of the Norwegian sovereign wealth fund. The very idea our greedy governors continually kick against.

God bless you... When GEJ and NOI wanted to set up Nigeria's 1st SWF, Govs and APC (mostly, ACN then) vehemently opposed to the idea. Only $1bn has been successfully placed in d fund; even that is been oppossed in the courts as we speak.

THE PROBLEMS OF NIGERIA IS NOT WITH THE FG BUT THE STATE GOVERNMENT. IF YOU SEE THE MISMANAGEMENT OF FUNDS AT THE STATE LEVEL U WILL WEEP FOR THIS COUNTRY. COME TO MY STATE AKWAIBOM N SEE WHAT GOVERNORS AIDS R DOING WITH PUBLIC MONEY. N THE ISSUE OF GIVING AUTONOMY TO LOCAL GOVRNMENT IS ANOTHER THING WE THE CITIZEN SHOULD FIGHT FOR, LG WAS ESTABLISH FORR THE PURPOSE OF GETTING CLOSER TO THE COMMON MAN BT NOW THE ESSENCE HAS BEEN DEFEATED. A SITUATION WHEREBY LG ALLOCATION IS BEING PAID INTO THE STATE GOVERNMENT ACCOUNT N THEY WILL REMOVE A FRACTION OF IT TO THE CHAIRMEN N POCKET THE REST. NIGERIA NEEDS A SERIOUS RE-STRUCTURING IF NOT NO MATTER WHAT THE PRESENT GOVT DOES IT WONT REFLECT FOR THE COMMON MAN AT THE LOCAL LEVEL TO SEE.

homerac7:

No, it's the gross ignominy you are projecting here that is the bigger problem. It is obvious that you have never done any qualitative objective research on issues of electricity in Nigeria pre-NIPP, intra-NIPP and present. If you know the details of NIPP, you will never ever claim that $16bn went down some imaginary drain. By the way, the investment on NIPP to date is in excess of $20bn. I hope it is still a wasted sum to you. Get knowledge bro.

Nigerians are tired of story, story, story! Whatever details you have on NIPP that you think you know better than anyone else is OK by me but what the ordinary man on street wants is POWER and not stories. The result of such huge expense of $16bn or $20bn is yet to be seen and until then I am of the opinion it is a waste.

pro01:

I was about to make the same point before I read your post.

I remember Amaechi's Governors' Forum was at the vanguard of opposition against the SWF. Now, what does that tell us?

@ Topic,

The truth is that Scandinavia is heaven on earth. Not because of the so-called oil or other natural endowments, but because of the quality of human beings they have - who they are as a people. This surreal reality is the same from Norway to Sweden, to Denmark, Luxemburg, and the rest. We can blame our political leadership in Nigeria (and by extension, Africa) from now until eternity, but the problem is not one of leadership. After all, a people always get the government they deserve.

Narrow-minded parochialism, tribalism, ethnocentrism, nepotism, favouritism, and all the other negative 'isms' are what defines us as a people. That is why things might never work, at least not in our generation.

The incumbent president and his team can only try to lay the foundations for a national reawakening that might usher in a new way of doing things, but the success of such a plan ultimately depends on ordinary Nigerians. I honestly do not feel too optimistic, considering that the average Nigerian I encounter daily does not seem ready to discard business as usual, and would readily exploit any situation for personal/familial/clannish advantage. . . .the same way their leaders at every level have ravaged the country since Independence.

It's a tragedy.

Good one Bro!

pro01:

I was about to make the same point before I read your post.

I remember Amaechi's Governors' Forum was at the vanguard of opposition against the SWF. Now, what does that tell us?

@ Topic,

The truth is that Scandinavia is heaven on earth. Not because of the so-called oil or other natural endowments, but because of the quality of human beings they have - who they are as a people. This surreal reality is the same from Norway to Sweden, to Denmark, Luxemburg, and the rest. We can blame our political leadership in Nigeria (and by extension, Africa) from now until eternity, but the problem is not one of leadership. After all, a people always get the government they deserve.

Narrow-minded parochialism, tribalism, ethnocentrism, nepotism, favouritism, and all the other negative 'isms' are what defines us as a people. That is why things might never work, at least not in our generation.

The incumbent president and his team can only try to lay the foundations for a national reawakening that might usher in a new way of doing things, but the success of such a plan ultimately depends on ordinary Nigerians. I honestly do not feel too optimistic, considering that the average Nigerian I encounter daily does not seem ready to discard business as usual, and would readily exploit any situation for personal/familial/clannish advantage. . . .the same way their leaders at every level have ravaged the country since Independence.

It's a tragedy.

Let me take you up on the Sovereign wealth fund thing, as far as we know in Nigeria, the state Governors do more for their states than the Federal Government, they need the funds to do this as their services are closer to the people, now if the FG is interested in a sovereign wealth fund, why does it not use part of its 56% of the national wealth to set up a sovereign wealth fund, this way, the Governors will not have any reason to object to it. The country is a federation, the FG can not act on behalf of the states without their consent.
The incumbent government should lead by example and stop expecting Nigerians to change when they themselves are still stuck in the 18th century.

EagleNest:
OSLO (Reuters) - Everyone in Norway became a theoretical crown millionaire on Wednesday in a milestone for the world's biggest sovereign wealth fund that has ballooned thanks to high oil and gas prices.

Set up in 1990, the fund owns around 1 percent of the world's stocks, as well as bonds and real estate from London to Boston, making the Nordic nation an exception when others are struggling under a mountain of debts.

A preliminary counter on the website of the central bank, which manages the fund, rose to 5.11 trillion crowns ($828.66 billion), fractionally more than a million times Norway's most recent official population estimate of 5,096,300.

It was the first time it reached the equivalent of a million crowns each, central bank spokesman Thomas Sevang said.

Not that Norwegians will be able to access or spend the money, squirreled away for a rainy day for them and future generations. Norway has resisted the temptation to splurge all the windfall since striking oil in the North Sea in 1969.

Finance Minister Siv Jensen told Reuters the fund, called the Government Pension Fund Global, had helped iron out big, unpredictable swings in oil and gas prices. Norway is the world's number seven oil exporter.

"Many countries have found that temporary large revenues from natural resource exploitation produce relatively short-lived booms that are followed by difficult adjustments," she said in an email.

The fund, equivalent to 183 percent of 2013 gross domestic product, is expected to peak at 220 percent around 2030.

"The fund is a success in the sense that parliament has managed to put aside money for the future. There are many examples of countries that have mot managed that," said Oeystein Doerum, chief economist at DNB Markets.

Norway has sought to avoid the boom and bust cycle by investing the cash abroad, rather than at home. Governments can spend 4 percent of the fund in Norway each year, slightly more than the annual return on investment.

Still, in Norway, oil wealth may have made the state reluctant to make reforms or cut subsidies unthinkable elsewhere. Farm subsidies allow farmers, for instance, to keep dairy cows in heated barns in the Arctic.

It may also have made some Norwegians reluctant to work. "One in five people of working age receives some kind of social insurance instead of working," Doerum said, despite an official unemployment rate of 3.3 percent.

(Reporting by Alister Doyle; Editing by Alison Williams)

Nigeria started producing and exporting crude oil almost a decade before Norway started and here we are, every Norwegian is a millionaire in Norwegian currency while Nigerians doesn't know their left from their right. Does it mean that Socialism is slightly better than capitalism because capitalism seems to be failing America. Or is it because America spends fortune in fanning and settling troubles in other countries and spend alot generally. No need of mentioning Nigeria because ours is a serious paradox.

Business Cycles in the global oil industry.

The military generals were the main destroyer of the country.
They stole tens of billions of dollars.

Does it mean that Socialism is slightly better than capitalism because capitalism seems to be failing America. Or is it because America spends fortune in fanning and settling troubles in other countries and spend alot generally. No need of mentioning Nigeria because ours is a serious paradox.

America problem is that they have highly irresponsible political class.
Both republican and democrat are bad parties.

How is socialism better than capitalism when the government practised capitalism by investing in different assets all over the world to get returns for its citizens