FEDERAL MINISTRY OF FINANCE
News Release, August 28, 2012

SOVEREIGN WEALTH FUND KICKS OFF
AS BOARD IS UNVEILED

· Okonjo-Iweala: It’s great day for present and future generations of Nigerians
· Managing Director/CEO resumes October

Following a rigorous and transparent process which lasted almost a year, the much anticipated Sovereign Wealth Fund (SWF) has become a reality with the announcement of the Board of the institution which will provide guidance for the operations of the Nigerian Investment Authority (NSIA).
The Chair of the Board is Alhaji Mahey Rasheed, a member of the Board of First Bank.

Mr Uche Orji, Global Coordinator and Head of US Semiconductor Research and Co-Head of US Tech Sector Research at a prominent global investment bank, UBS has been appointed as Managing Director/Chief Executive Officer following his top performance in the contest for the position. His appointment is for a term of five years. Mr Orji had also previously served as MD at JP Morgan.

Other members of the Board include: Mr Arnold Ekpe, Mr Jide Zeitlin, Mrs Bili Awosika, Barrister Bisi Soyebo (SAN), Alhaji Hassan Usman and Mrs Stella Ojekwe-Onyejeli who will also serve as Chief Risk Officer.

However, upon completion of due diligence, the candidate for Chief Investment Officer has been dropped and the position will be re-advertised shortly.

In all, 730 applications were received for three executive positions – Chief Executive Officer, Executive Director (Investments) and Executive Director, (Risk). 40 of these were long listed by KPMG which assisted in sourcing suitable candidates, 16 candidates were short listed before the final three were selected.

With this development, the country is firmly on the path to reaping the benefits of this tried and tested strategy for achieving fiscal prudence and economic transformation.

Implementation of the SWF will commence with an initial fund of $1 billion.
Speaking on the issue, Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala stated that “The establishment of an institutional foundation for the Sovereign Wealth Fund is a victory for all Nigerians and a credit to the President who assented to the Bill in May last year”.

She added that it also demonstrates the determination of the Federal Government to improve the lives of Nigerians through far sighted policies and initiatives.

“We have started putting together a quality team to ensure that we realise the objectives that inspired the establishment of the SWF. I am sure the team realises what is at stake and is ready to do the necessary work so that the country can start enjoying the benefits as soon as possible”.

It will be recalled that the Act establishing the Authority received presidential assent on May 27, 2012 as an independent statutory corporation with a mandate to:

· Build a savings base for future generations of Nigerians;
· Enhance the development of Nigerian infrastructure
· Promote fiscal stability for the country in times of economic stress; and
· Carry out such other matters as may be necessary in furtherance of these objectives

The process that led to the emergence of the new team kicked off on September 8 last year when the CME set up a six-man Implementation Task Force headed by distinguished banker and philanthropist Mr Fola Adeola with a mandate to assist in determining concrete steps to be taken by the Federal Government to actualise the Nigerian Sovereign Investment Authority (NSIA).

Following the recommendation of the Task Force, an Executive Nomination Committee (ENC) composed of six Nigerians with integrity, independence, proven qualification and tested market experience from the six geo-political zones of the country was established. The Committee had the responsibility to assist with the selection of members of members of the Board, a key plank of the governance structure of the institution.

With the CME as Chair, the six ENC members are:

1. Mrs Sola David Borha - (CEO, Stanbic IBTC; South West)
2. Lady Nkoyo Toyo - (Hon. Member, House of Representatives; South South)
3. Mr Uwa Etigwe, SAN - (Partner, Streamsowers & Kohn; South East)
4. Dr Obadiah Mailafia – (Former Deputy Governor, CBN; North Central)
5. Mr Mahey Rasheed – (Board Member, First Bank; North West)*
6. Mr Hassan Usman – (CEO, Aso Savings & Loans; North East)*

The Task Force also recommended the appointment of KPMG to assist in sourcing top quality candidates for the three executive positions on the Board and the implementation of a competitive recruitment process through local and international advertisement of available positions. The vacancy adverts were subsequently published in prominent local and international newspapers and magazines.

Managing Director of the NSIA will officially report for duty in October. The Board of NSIA will be inaugurated the same month.

Four Ministers of Finance have worked to realise the SWF. During her first stint as Minister of Finance, Dr Ngozi Okonjo-Iweala helped achieve the Excess Crude Account upon which the SWF concept is anchored. She has also led the Ministry of Finance under the leadership of President Goodluck Jonathan to finally make SWF a reality. Dr Shamsudeen Usman and Dr Mansur Muhtar did a lot to progress the work; and finally Mr Segun Aganga pushed through the SWF bill.

Paul C Nwabuikwu
Senior Special Assistant to the Coordinating Minister and Minister of Finance
*The two board members who are also members of the Executive Nomination Committee were nominated by other members in their absence.