Policy Framework for Sovereign Wealth Fund Management in Nigeria - The Norwegian Example as A Lesson to Nigeria

John Okey Onoh PhD; Veronica Adaku Ihezukwu PhD; Effe-Nnamdi Ann Chinenye

doi:10.56201/ijefm.v11.no5.2026.pg204.219

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Policy Framework for Sovereign Wealth Fund Management in Nigeria - The Norwegian Example as A Lesson to Nigeria

John Okey Onoh PhD, Veronica Adaku Ihezukwu PhD, Effe-Nnamdi Ann Chinenye

Abstract

This study examines the policy framework for sovereign wealth fund management in Nigeria, drawing lessons from Norway's experience. The study employs a quantitative research design, using secondary data from 1990 to 2024 to analyze the institutional quality index (mean: Norway = 0.95, Nigeria = 0.55), SWF governance score (mean: Norway = 0.85, Nigeria = 0.45), policy framework index (mean: Norway = 1.05, Nigeria = 0.65), SWF performance (returns) (mean: Norway = 0.2, Nigeria = 0.1), and economic growth rate (mean: Norway = 3.5%, Nigeria = 2.5%). The analysis reveals that Norway's strong institutional framework, good governance, and robust policy framework have contributed to its successful SWF performance, with a mean return of 0.2. In contrast, Nigeria's weak institutional framework, poor governance, and inadequate policy framework have hindered its economic development, with a mean return of 0.1. The interpretation of findings suggests that Nigeria can learn from Norway's experience to establish a successful SWF. The study recommends that Nigeria should strengthen its institutional framework (e.g., improve transparency, accountability, and rule of law), improve its governance structure (e.g., establish an independent board of directors), and adopt a robust policy framework (e.g., clear investment guidelines and risk management strategies) to manage its oil wealth effectively. The data values analyzed in this study provide insights into the performance of SWFs in Norway and Nigeria, highlighting the importance of strong institutional frameworks and good governance in managing oil wealth. The study's results can inform policymakers and stakeholders in Nigeria and other oil-rich countries on the best practices for SWF management. IJEFM

Keywords

Sovereign Wealth FundInstitutional QualitySWF GovernancePolicy FrameworkNigeriaNorwayOil WealthEconomic Development.

References

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Policy Framework for Sovereign Wealth Fund Management in Nigeria - The Norwegian Example as A Lesson to Nigeria

Abstract

Keywords

References

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