The managing drector, Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang, has said the agency’s current legal framework is inadequate to address modern asset management challenges and optimise the potential N100 trillion in government assets for national development.
Takang stated this in his presentation at a public hearing on the “A Bill for an Act to Repeal the Ministry of Finance Incorporated Act, Cap M229, Laws of the Federation of Nigeria 2024, and Any Amendments Thereto, and to enact the Ministry of Finance Incorporated (Establishment, Etc.) Act” in Abuja on Monday.
He said the proposed amendment, if passed into law would ensure that all state-owned entities are professionally managed and positioned for economic impact and increase revenue generation.
The managing director said the revenue generation would be achieved through a boost in dividend payments, capital appreciation, and overall returns from federal government investments.
Takang noted that with the new law, the agency would create a comprehensive registry of all government assets, liabilities, and their current status as well as optimise utilisation and value creation from existing corporate assets and properties.
“MOFI has been restructured as the investment arm and assets manager of the Federal Government of Nigeria and mandated as custodian and active manager of all the federal government’s investment interests, assets, estates, easements, and rights. This new mandate positions MOFI as a strategic institution that supports the federal government’s efforts to address economic challenges and spur growth in the Nigerian economy.
“MOFI’s strategic approach to executing its mandate involves – providing visibility over what the Federal Government owns; professionalising state-owned entities and other investment assets, ensuring they are effectively and efficiently managed to achieve greater economic impact.
“Delivering optimal risk-adjusted returns on FGN investments and assets in a consistent and sustainable manner; unlocking liquidity from FGN’s idle assets; and mobilising and investing capital in opportunities that are strategic to the nation’s economic and social development plans,” he submitted.
In his remarks, Speaker Abbas Tajudeen said MOFI has consistently failed in its operations, to act in compliance with the laws and best practices since it was established in 1959 and its legal framework updated in 2004.
Represented by Hon. Billy Osawaru (APC, Edo), the speaker said the agency required legal strengthening to be in a position to act more transparently on behalf of the Federal Government.
“We are here today as part of our critical legislative responsibilities to review and deliberate on the amendment of the aforementioned finance law to reposition it to comply with extant financial regulations and laws.
“This public hearing provides a platform for you to make your contributions as stakeholders, experts, and interested parties to assist the House in repealing the Act and aligning it with contemporary realities. As lawmakers, our three cardinal responsibilities are oversight, lawmaking, and representation,” he said.
In their separate presentations, some federal government agencies such as Stock Exchange Commission supported the bill while Bureau for Public Enterprises(BPE) opposed the proposed legislation.
The BPE representative, Halima Halilu said the extensive asset management, investment and fund-raising powers proposed for MOFI in the bill need to be carefully reconsidered and harmonised with the extant statutes on powers and responsibilities of other agencies.
