UPDATE 2-Nigeria president submits bill to create wealth fund

Mon Sep 13, 2010 1:53pm GMT

* Fund to help finance infrastructure development

* $1 billion set aside in seed capital

* Jonathan eyes increased foreign investment

(Adds details throughout)

By Felix Onuah

ABUJA, Sept 13 (Reuters) - Nigerian President Goodluck Jonathan said on Monday he had sent a bill to parliament to create a sovereign wealth fund and that federal and state governments had set aside $1 billion in seed capital.

Africa's biggest oil producer wants to establish the fund to divert more of its revenues towards badly-needed infrastructure development, save for future generations, and set aside a financial reserve to weather any economic downturns.

The wealth fund would replace the current system by which the OPEC member is meant to save oil revenues above a benchmark price into an excess crude account (ECA), a pillar of reforms backed by the International Monetary Fund and launched in 2003.   Continued...

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