Nigeria's looking for a trio to lead its new Sovereign Wealth Fund
At least ten years' experience at high level in financial services: this is what is required to apply for the three top jobs at the newly-created Nigeria Sovereign Investment Authority (NSIA).
The oil-producing African state was one of only three members of Opec not to have a sovereign wealth fund - along with Ecuador and Iraq - but has now decided to rectify the situation and has created a fund with an initial capital of $100bn.
Finance minister Ngozi Okonjo-Iweala, a former MD at the World Bank, has explained that the new fund's objectives are "saving for the future, investment in strategic infrastructure and building a buffer against shocks like the current global financial crisis." She said that the accounting and consultancy firm KPMG has been given the task of searching for the management team "in a transparent and credibile manner". The executive nomination committee, made up of "highly respected Nigerians", will give final approval to the recommended candidates.
NSIA is looking for a chief executive, who must be a Nigerian citizen, and for a chief investment officer and a chief risk officer, both of whom can be of any nationality. Women are "strongly advised to apply for the posts on offer". The Ceo must be a Nigerian for obvious reasons of prestige and national pride, but the Nigerian authorities are aware that especially in the area of risk assessment candidates must have international experience in order to be credible. The Abu Dhabi Investment Authority, who manages the world's biggest sovereign wealth fund, has recently strengthened its top ranks recruiting senior Western investment bankers.
The positions have been advertised in the Nigerian and international financial press, the selection process is underway and the appointments are due to be announced before the end of December, in line with the Government's indications that speed is of the essence. "We cannot afford to waste any time," said Ms Okonjo-Iweala. The creation of the Sovereign Investment Authority had already been delayed by the strong opposition of regional governors who feared a loss of control over revenues.
A transparent choice following the correct procedures is now crucial: "Nigerian politicians must avoid the temptation to interfere with KPMG's selection process by attempting to install partisan cronies or political loyalists," say Gordon Bottomley and Marina Grushin, associates at global intelligence firm Ergo. "If shielded from state kleptocracy, the sovereign wealth fund could help Nigeria overcome come of the major developmental challenges - deteriorating infrastructure and a limited power supply chief among them - that have kept it from becoming an African powerhouse."
