Editorial
That Sovereign Wealth Fund
Last Tuesday, the National Executive Council (NEC) approved the substitution of the nation’s existing Excess Crude Account (ECA) with a new National Sovereign Wealth Fund (NSWF).
The new Fund, according to NEC, would be subject to approval by the National Assembly before its take off in few months time.
The birth of the NSWF, which did not come as a surprise to many Nigerians, perhaps, signifies the end of the unending controversies surrounding the application of the ECA.
Explaining the modus operandi and the rationale behind its creation, the minister of finance, Mr Olusegun Aganga, said the the new fund is an embodiment of robust institutional framework and strong fiscal policy for managing excess crude earnings, with the advantage of a stabilization fund structured to boost infrastructure and other developmental needs of the country.
NEC, with the Acting President, Goodluck Jonathan as Chairman, agreed on the need to depart from the vagaries of the past that marred execution of the Excess Crude Account, by ensuring a legal backing for the National Sovereign Wealth Fund. By that, the NSWF would enjoy legitimacy which the ECA, a product of political and economic expediency, was bereft of.
The Council members shared a common cardinal objective for setting up the new fund , that time has come to save for the future, rather than expend all revenue generated in the country.
That was the major shortfall of the Excess Crude Account, leading to its regular depletion, otherwise it was used as revenue complement when oil price ebbed.
If anything, the ECA was more dead than alive on arrival, as it was left to the whims and caprices of corrupt leaders, an oversight responsible for the devisive tendencies between the federal and state governments. In fact, it became a matter for the courts to decide how it should be shared.
ECA’s regular slide from $20.1, billion to $7.8 billion, between 2008 and 2009, was noteworthy and alarming, which informed the warning from World Bank Director and Nigeria’s former finance minister, Dr Ngozi Okonjo-Iweala. She suggested a policy action by the federal government, Central Bank of Nigeria and the Ministry of Finance to arrest the situation.
Still on its unstable nature, the Revenue Mobilization, Allocation and fiscal commission (RMAFC), last year, criticized management of the Excess Crude Account, noting that government was depleting the account when no single dollar accrued from crude sale between August to October, save the much that came from other sources.
Apparently, NEC’s option for the new NWSF is shared by many. But we wish to advise that the primary pitfalls of ECA are still very much around and ready to threaten the existence of the Sovereign Wealth Fund if not well managed.
For instance, certain basic rules that stimulate wealth creation and financial discipline must be kept for the SWF to succeed. They include: flexible and market based exchange rate, curbing fiscal deficit, checking debt increase (domestic borrowing) and transparent bank recapitalisation.
While we share NEC’s policy of saving for the future, therefore, we maintain that these conditions if not adhered to would translate government’s new plan to merely storing an old wine in a new vessel.
Again, we make haste to add that the “Nigerian factor” must not bedevil the operation of the new fund. Rather than create a loophole (despite the legal framework) for corrupt leaders to abuse the fund and challenge aggrieved persons in court, let the status quo remain.
After all, it would amount to a lesser evil if part of the fund is channelled to special projects while the rest is shared among the states.
Indeed, only a workable legal framework, supported by strong political will, can ensure a successful Sovereign Wealth Fund.
But just as we plan for the rainy day, it is our opinion that the federal government, through the SWF, should set aside specific fund to fast-track infrastructural and sectoral development in the states.
We welcome the NSWF, in the belief that if well managed, it would serve as the much needed stabilizing factor in the nation’s sources of revenue generation and savings. In addition, it would save the nation from more borrowing and larger deficit, should our yearly oil revenue assumption in the budget fail.
Editorial
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Editorial
WPFD: Nigeria’s Defining Test
Nigeria stands at a critical juncture as the world marked World Press Freedom Day (WPFD) on May 3. This annual observance is a reminder that a free press is central to democratic life, good governance, and public accountability. For Nigeria, it is also a moment for sober reflection on how far the country has come and how far it still has to go in safeguarding the independence of its media.
World Press Freedom Day exists to highlight the fundamental importance of freedom of expression and to honour journalists who risk their lives in pursuit of truth. It underscores the idea that without a free press, societies cannot function transparently, nor can citizens make informed decisions. In countries like Nigeria, where democracy continues to evolve, the observance carries particular urgency.
This year’s theme, “Shaping a Future at Peace: Promoting Press Freedom for Human Rights, Development and Security”, places journalism at the heart of global stability. It emphasises that a peaceful society cannot be built on silence, fear, or manipulated information. Rather, it depends on the free flow of accurate, timely, and independent reporting.
At its core, the theme highlights the role of journalism in fostering accountability, dialogue, and trust. These are not abstract ideals. In Nigeria, where public confidence in institutions is often fragile, the media remains one of the few platforms through which citizens can question authority and demand transparency. When press freedom declines, so too does public trust.
Journalism serves as a foundation for peace, security, and economic recovery. Countries with robust media systems tend to attract greater investment, maintain stronger institutions, and resolve conflicts more effectively. Nigeria’s economic challenges, ranging from inflation to unemployment, require open scrutiny and informed debate, both of which depend on a free press.
However, the issue of information integrity has become increasingly complex in the digital age. Artificial Intelligence (AI) and online platforms have amplified the spread of misinformation and disinformation. In Nigeria, where internet penetration has grown rapidly, false narratives can travel faster than verified facts. This makes the role of credible journalism more vital than ever.
The challenge is not only technological but also ethical. AI-driven manipulation of information threatens to distort public discourse, influence elections, and deepen social divisions. In such an environment, professional journalism must act as a stabilising force, ensuring that truth prevails over sensationalism and propaganda.
Equally troubling is the safety of journalists. Across Nigeria, reporters face growing levels of online harassment, judicial intimidation, and physical threats. Self-censorship is becoming more common, as media practitioners weigh the risks of reporting sensitive issues. This trend undermines the very essence of journalism.
A particularly alarming incident involved a serving minister in the present administration, who openly threatened to shoot a journalist during a televised exchange. Such conduct, broadcast to the public, sends a dangerous signal that hostility towards the press is acceptable. It erodes the norms of democratic engagement and places journalists in harm’s way.
This year’s theme aligns closely with the United Nations Sustainable Development Goal (SDG)16, which promotes peace, justice, and strong institutions. Freedom of expression is a cornerstone of this goal. Without it, institutions weaken, corruption thrives, and justice becomes elusive. Nigeria’s commitment to SDG 16 must therefore include genuine protection for the media.
Historically, the Nigerian press has been a formidable force. From resisting colonial rule to challenging military dictatorships, our journalists have played a central role in shaping the nation’s political landscape. Today, however, that legacy appears to be under strain, as the media operates under what can best be described as a veneer of freedom.
Beneath this facade lies a troubling reality. Journalists are routinely harassed, detained, and prosecuted for performing their constitutional duties. Reports from media watchdogs indicate that dozens of Nigerian journalists face legal threats or arrest each year, often for exposing corruption or criticising those in power.
The Cybercrimes (Prohibition, Prevention, etc.) Act of 2015 has become a focal point of concern. Originally intended to combat cyber threats, it has increasingly been used to silence dissent. Sections 24 and 27(1)(b), in particular, have been invoked to target journalists, bloggers, and social commentators.
Although amendments introduced in February 2024 were meant to safeguard journalists, concerns persist. The law continues to be wielded in ways that stifle investigative reporting and restrict freedom of expression. Legal reforms must go beyond cosmetic changes to address the root causes of misuse.
To safeguard the future of journalism in Nigeria, decisive action is required. The Cybercrimes Act must be revisited to ensure it cannot be weaponised against the press. Law enforcement agencies must operate free from political influence, upholding the rule of law and protecting journalists’ rights. Civil society and international partners must also strengthen independent media through funding, training, and platforms for wider reach.
In this rapidly evolving world shaped by artificial intelligence and digital innovation, Nigeria faces a clear choice. It can either allow press freedom to erode under pressure, or it can champion a truly independent media landscape. The path it chooses will determine not only the future of journalism, but also the strength of its democracy and the peace it seeks to build.
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