The House of Representatives yesterday passed, on second reading, a bill to repeal the Ministry of Finance Incorporated Act 1959 and re-enact the Ministry of Finance Act 2024.
The bill seeks to ensure strong legal backbone for MOFI to manage, account for and optimise the use of over N300 trillion worth of Federal Government Assets by granting it certain powers and ensuring that the board is properly incentivised.
The proposed legislation, titled:
“A Bill for an Act to Repeal the Ministry of Finance Incorporated Act, Cap. M229, Laws of the Federation of Nigeria, 2004 and any amendments thereto and Enact the Ministry of Finance Incorporated (Establishment etc.) and for Related Matters (HB. 986)” is sponsored by Hon. Ademorin Kuye (APC, Lagos).
The bill, when passed into law, will reinvigorate MOFI by providing the necessary institutional framework to guide its corporate governance and establish its organisational structure.
Leading debate on the general principles of the bill, Kuye said its main objective is to empower MOFI to identify and enumerate; to hold and manage all the assets and investments of the federal government to ensure productivity and sustainability; develop and implement a National Asset Management strategy, among others.
“MoFI was established in 1959 by an act of parliament to serve as the sole custodian of Federal Government Assets throughout the Federation. However, MoFI, since its establishment, has not operated as it should be given the pillage, brigandage, abandonment, diversion, misappropriation and abuse of federal assets throughout the country.
“Since the old Act of 1959 contains only 6 sections without the needed impetus for the Corporation to assume its role in modern Nigeria, the new act is introducing a comprehensive framework of 49 sections for the conduct, management, use and custodianship of Federal Government Assets.
“One of the unique objectives of the bill is proposing that the Corporation create an asset register for the Federal Government. It highlights the creation of National Assets Register that will contain accurate record of the assets and liabilities of the Government and their corresponding value, depreciation, location, and major components, which are managed and administered by the Corporation from time to time.
“As part of the Corporation’s KPI, the bill also provide that the Corporation ensure efficient control, management, utilization and disposal of the assets of the Government in a manner as will be directed by the Council, appoint asset managers outside the Corporation to manage its assets and that the Board, in consultation with the Minister, ensure the custodianship of the Federal government’s assets is appropriately diversified,” he added.
