The Ekiti State Government announced the Ekiti State Wealth Fund Bill was approved by the State Executive Council on Wednesday. The fund is will be the first sub-sovereign wealth fund in Nigeria.
The fund when launched is set to have a stabilisation fund, which would be operated alongside a future generation fund and an investment facilitation fund.
This was disclosed by the state’s Commissioner for Finance, Akintunde Oyebode on Wednesday evening.
N1 billion seed: Oyebode also noted that the state will start the fund with an initial seed fund of N1 billion, he said:
- “Today is a great day! Our Ekiti State Wealth Fund Bill was approved by the State Executive Council today, and transmitted to the State House of Assembly, for consideration. When passed, it will be the first sub-sovereign wealth fund in Nigeria
- “The fund will have a stabilisation fund for the rainy day (with strict conditions for withdrawal); a future generation fund in liquid assets; and an investment facilitation fund to crows in private capital. We are seeding it with N1 billion on Day One.
He added days like it makes the experience worthwhile, and praised the State governor, Biodun Oyebanji who he says “ backed this wholeheartedly and made it possible; and the unsung heroes who drafted/reviewed the bill that’s being sent for legislative consideration.”
What you should know
Nigeria’s Sovereign Investment Authority (NSIA) has been used to spur investments in the energy sector. In January 2023, President Buhari commissioned Nigeria’s first-ever grid-connected solar power plant, a 10-megawatt (MW) facility in Kano State.
The Kumbotso Solar Plant, developed by the Nigeria Sovereign Investment Authority (NSIA) and Haske Solar, was tendered in 2020 and is being implemented by Haske Solar Company, a special-purpose vehicle established by the NSIA. Haske Solar is 80% owned by the Federal Government of Nigeria, 15% by Kano State, and 5% by the Kumbotso Local Government Area.
The plant is expected to provide a much-needed boost to industries in the state that rely on electricity to power their operations. The next administration will only need to monitor its progress through the project developer, NSIA, as it provides power to industrial hubs in Kano state.