Demands accountants-general office for FG, AGF
Bode Olagoke
The Central Bank of Nigeria (CBN) has demanded for a constitutional provision to back up the Sovereign Wealth Fund (SWF), so as “to save for the rainy day.”
The country’s apex bank also advocated for the creation of the office of accountant-general for the federal government which would be separated from the existing office of the Accountant-General of the federation (AGF).
Appearing before National Conference committee on Public Finance yesterday Alhaji Sulaimon Barau, who represented the CBN acting governor said “Nigeria’s Sovereign Wealth Fund was intended to replace the Excess Crude Account in order to provide long term savings for economic stabilization, infrastructural development and generational equity.
“The ECA has been critiqued as a mere arrangement based on a memorandum of understanding among the three tiers of government, thus necessitating the need for a constitutional backing for the SWF to provide for a stable long term savings to address the country’s infrastructure challenges, provide stabilization fund against the volatilities in oil prices/revenues and ensure generational equity.
“This has been the basis of continuous demand to meet budget shortfalls in the form of argumentation. It is thus, imperative to give constitutional impetus to the SWF established by the federal government.
“The consequences of operating the federation account as zero account could be mitigated by creating savings for the future generation, enhancing macroeconomic management, and improving economic planning. Therefore, it is necessary to entrench the excess crude account which can be managed and invested by the CBN. In addition, the SWF could be included in the constitution.”
He said “the lack of appropriate constitutional mandate to create the SWF poses operational challenges, which have been the basis for legal contests by the sub-national governments.”
But the proposal attracted questions from some members of the committee who did not see any need to save when so much poverty dwels in the land.
The chairman of the committee and former governor of Kebbi. state, Senator Adamu Aliero while reacting to the presentation earlier said that though SWF policy was not yet in the constitution, it was still necessary to save.
“It is true that there is no constitutional provision for the Sovereign Wealth Fund, we have to save for the rainy day. We will recommend to the main body the importance of including it in the constitution. There is a suit now challenging the constitutionality of the Sovereign Wealth Fund. We have to save for the rainy day. Your recommendations are in tandem with the recommendations we received from other revenue agencies.”
Speaking to Journalists, a member of the committee and former Governor of Bayelsa State, Chief Diepreye Alamesigha said there was no need stashing funds abroad amidst hunger.
“Am sure you were inside when I asked the native question because to me if we have 1billion dollars and we judiciously apply it to very critical sectors in our economy, it will improve our economic base and create employment. So if you do cost benefit analysis saving the money for a rainy day maybe outside the country when I have not eaten three square meal in this country is questionable.