Minister for State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has said the Federal Government is considering plans to ‘lock up’ revenues realised from the oil sector and save them in the Sovereign Wealth Fund (SWF), ThisDay reports.
Kachikwu, who made the disclosure at the unveiling of Heyden Petroleum’s mega petrol station in VGC, Lagos, said efforts were being made to convince President Muhammadu Buhari to buy into the idea in order to save for the future generation. The SWF was created to manage and invest funds on behalf of the government. The fund, which started operations in October 2012, was set up with an initial $1 billion as seed capital, by the Nigeria Sovereign Investment Authority Act, which was signed in May 2011.
Essentially, the SWF was established to invest the savings gained on the difference between the budgeted and actual market prices for oil to earn returns that would benefit future generations of Nigerians. Kachikwu, who attributed Nigeria’s present economic quagmire to her dependence on oil revenue, said rather than rely on oil receipts, government should focus on the interest elements from oil, while leveraging monies from other sources to spend.