Reps Probe Use Of Foreign Managers For Sovereign Fund

Channels Television  
Updated November 13, 2013

The House of Representatives in Nigeria has launched a probe into the appointment of foreign portfolio managers for the nation’s Sovereign Wealth Fund.

The probe is to look at the possible risks the country faces with the appointments of foreign financial institutions – UBS and Goldman Sachs – to manage the fund.

Femi Gbajabiamila, who is the house minority leader, argued that “allowing foreign financial institutions to manage the fund amounts to putting Nigeria’s economic sovereignty and security in foreign hands”.

He also said a conflict of interest existed, as two former staff of the foreign institutions had prominent roles within the fund.

The issue triggered a debate in the chamber. Members had to vote to decide its fate.

A joint committee has been mandated to investigate the matter to determine the risks that may arise from the appointment of foreign institutions to manage the funds.

A report is expected from the committee in two weeks.