Lagos State Governor, Babatunde Fashola, yesterday described the inauguration of Nigeria Sovereign Investment Authority, NSIA, by President Goodluck Jonathan, as unconstitutional.
Fashola argued that rather than saving money, the fund should have been released to state governments who owned part of the money being invested to develop their respective states. He said: "If you save money, how much are you gaining?
The next generation will do better by the investment we made for them; not by the money saved." Speaking when he played host to some members of the NSIA led by its Chairman, Mahey Rasheed, at the Ikeja State House, the governor disagreed with the initiative, saying there were many fundamental constitutional issues in the policy.
He said: "As far as this matter is concerned, I have since made my decision known both in public and in private when the discussion was underway. I disagreed because there are fundamental constitutional issues.
"How do we save money by an Act of the National Assembly when the constitution clearly says all the money must go to federal accounts and the accrued money must be shared and distributed among states of the federation?"
The governor said no matter how attractive a concept like NSIA was, Nigerians must learn to ask the real question. According to him, when the Americans are borrowing money to develop America, Nigeria is still talking about saving money He said: "Is our economy a saving economy now or an investment time? What part of the money is to be saved? What percentage should the Federal Government save?
Why can't the Federal Government save its one 52 per cent? Why are we talking about saving money when all our infrastructure are old? Infrastructure built many years ago.
"That is how they are smarter than us. They borrow money to develop their country; and we go to their schools and hospitals to spend expensively. That is why things are very expensive there.
Why can't we borrow money to develop our country too?" President Goodluck Jonathan had on September 19 inaugurated the NISA Governing Council and Board and issued share certificates of contribution to the Sovereign Wealth Fund to the 36 states. Picking holes in the policy, Fashola said Nigeria could not be compared with countries where the NSIA kind of policy was in practice. He said: "Where this kind of policy is practised is either they are monarchies or emirates. They are not the same like us."
Speaking earlier, Rasheed said they were in the State House to present the shareholders' certificate to the governor and to solicit his support. He said the funds belonged to all the components of the federation, adding that the objective was to invest and return proceeds of investments to the Federal Government coffer. Rasheed said the Act establishing NSIA had been passed by the National Assembly and signed by the President.
He added that international fundraisers were looking for opportunities to invest in Nigeria; expressing the belief Lagos was very strategic in this regard. Briefing journalists after the meeting, the NSIA Managing Director and Chief Executive Officer, Uche Orji, said the initiative was facing numerous challenges among which was political because many state governments were yet to be convinced about it.