N100trn Assets Target: MOFI Intensifies Investment Diversification Drive

As part of efforts to meet its target of growing the federal government’s Asset Under Management (AUM) to N100 trillion, the Ministry of Finance Incorporated (MOF)) is intensifying its investment diversification drive  away from the oil and gas sector of the economy.

With current AUM of $18.3 trillion the MOFI has a big task ahead to achieve its N100  trillion AUM target by 2033.

This is moreso with over 70 per cent of its current AUM skewed in favour of hydrocarbon, that is the oil and gas sector, thus making it highly susceptible to the volatility of oil prices in the international market

Speaking on the development, the chief executive officer of MOFI Dr Armstrong Takang, said the institution is working to diversify it’s investments into Agri-businesses , comprising smallholder farmers, land cultivation,  Agriculture infrastructure and crop optimisation among others;  Manufacturing; Fintech

as well as Estate Real infrastructure.

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Speaking at the 2nd 2023 PPP Units’ Consultative Forum (3PUCF) in Abuja yesterday, Dr Takang decried the fact that Nigeria spent over N3 trillion to import food products into the country, insisting that Nigeria must be able to produce enough food to feed it’s citizens as this will help control inflation and ensure national security.

Giving an overview of portfolio in MOFI’s kick-off assets, Takang noted that the total estimated value of the institution’s holdings is currently N18.3 trillion comprising 40 companies.

This is broken down mainly into sectors  as follows: Energy and Extractives, N14.3 trillion accounting for 72 per cent of total assets; Financial services with N2.57 trillion or 16 per cent of total;  Infrastructure N1.44 trillion or nine per cent of total AUM.

The CEO said MOFI’s strategy will be implemented in three waves as follows: Wave 1 – Fix the basics and this was launched in second quarter of 2023; Wave 2 – Build credibility – to be launched in Q4 2023; while Wave 3 – Diversify portfolio will be launched in 2026 and beyond.

Also speaking, director general of the Infrastructure Concession Regulatory Commission (ICRC), Mr Michael Ohiani, said the commission has mobilised N11 trillion in private capital into infrastructure projects across the country through diligent prosecution of its mandate.

According to him, “From the inception of ICRC in 2010 to date, following our regulatory guidance in line with extant rules and subsequent issuance of Full Business Case (FBC) compliance certificates, a total of 103 PPP projects have been approved by the Federal Executive Council (FEC).

“These projects will bring in private capital investment of almost N11 trillion (approximately $24 billion)  and a projected revenue of over NGN 3 trillion and $38 billion for the country.

“Many of these projects are at different stages of procurement. These projects cut across various sectors including but not limited to transportation, health, education, aviation, agriculture, and water, he said.

According to the D-G, some of the notable projects approved since it’s last meeting included the  Lagos-Ibadan Rail E-Ticketing Concession; Warri-Itakpe Rail E-Ticketing Concession; Device Management System Concession; 40MW Kashimbilla Hydropower Project; 360MW Gurara II Multipurpose Dam Project; and the

Electronic Civil Registration and Vital Statistics System (eCRVS) Platform.

Other approvals obtained included the establishment of Aviation Leasing Company Concession to alleviate the problem of aircraft leasing and high insurance premium charges to Nigerian Airlines on Aircraft leasing; Rehabilitation and Expansion of the Burutu Port; Port of Ondo Multipurpose Deep-Sea Port;  the Expansion and development of Snake Island Multipurpose Sea Port; On street park and pay in the FCT; Expatriate Employment Levy and Concession of Mallam Aminu Kano International Airport, Kano xiv. Concession of Nnamdi Azikiwe International Airport, Abuja.

Also approved were Development of Senior Police Officer’s quarters at Ikeja, Lagos; Regularization Process: Editorial Services and Publication of the Laws of the Federation of Nigeria and All Nigeria Law Report; Publishing and Marketing of Court Appeal (specialised) Law Report;  NIWA Business Processes (E-NIWA); Electronic E-Call Up System at Onne Port and 700 MW Zungeru Hydro Electric Power Plant.

“In view of our collective responsibility to deliver about 85 per cent of our infrastructure projects using the private sector, in line with the 2021-2025 Mid Term Expenditure Framework of the National Development Plan (NDP), this platform continues to play a key role for all MDAs and stakeholders to share our PPP knowledge, challenges, progress and experiences in general, Ohiani stated.