16 July 2014, Abuja – The Nigeria Sovereign Investment Authority (NSIA) has said it got an improved rating as a sovereign wealth fund by the Linaburg-Maduell transparency index administered by the Sovereign Wealth Institute.
A statement from the agency noted that in the official statement announcing the second quarter 2014 ratings, “the Institute singled out the NSIA for special mention stating that the NSIA has been upgraded to nine points out of a possible 10 from a score of 4 in the previous rankings.”
This rating, NSIA said, translated into a leap from a position of joint 33rd to joint second; the only African sovereign wealth fund so ranked.
“With the latest rankings, NSIA is in credible company alongside sovereign wealth funds from the USA, France, South Korea, Brazil and Malaysia,” the statement pointed out.
More significantly, it added: “The improved transparency ranking validates NSIA’s commitment and adherence to the highest prescriptions of the Santiago Principles with respect to corporate governance, investment strategy, disclosures and SWF best practices.”
According to the statement, “the NSIA believed that the capacity to deliver on its statutory mandate, for the benefits of all Nigerians, depends on these values hence the unwavering commitment to best practice standards in all policies, procedures and systems.”
The Linaburg-Maduell Transparency Index was developed at the Sovereign Wealth Fund Institute by Carl Linaburg and Michael Maduell and is a method of rating transparency in respect to sovereign wealth funds.
In arriving at the rankings, the index amongst others considers the following principles: The provision of history, including reason for creation, origins of wealth, and government ownership structure; The provision of up-to-date independently audited annual reports; the provision of ownership percentage of company holdings; the provision of total portfolio market value, returns, and management compensation; the provision of guidelines in reference to ethical standards, investment policies, and enforcer of guidelines; and the provision of clear strategies and objectives if applicable by the Fund as well as it clearly identifying its subsidiaries.
– This Day