By Tony Obiechina, Abuja
The Ministry of Finance Incorporated (MOFI) has been granted presidential approval to operate as an autonomous entity outside the civil service structure in accordance with global best practices.
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed who disclosed this at the official launch of MOFI
Governing Council, Board of Directors and Executive Management Team by President Muhammadu Buhari in Abuja on Wednesday said the body is now expected to run as a world-class asset and investment management organization.
According to her, MOFI is now expected “to generate revenues to sustain itself by charging management fees for the assets under its management”.
The Minister said MOFI Governing Council is to be chaired by the President, while the Finance Minister, as a Council Member serves as Vice Chair. Other members of the Council include Ministers of Petroleum Resources; Industry, Trade, and Investments; Transportation; Aviation; Central Governor and three experts appointed by the President.
Board of Directors has Dr. Shamsudeen Usman (Chairman); Permanent Secretary, Finance; Permanent Secretary, Petroleum Resources; Accountant General of the Federation; among others.
The Minister pointed out that, “in transforming MOFI into an active investor that drives value for the portfolio, the Nigerian Government stands to reap significant rewards, as estimates indicate that the financial value derivable from MOFI’s current portfolio could reach up to NGN 100 trillion ($232 million) by 2033”.
Mrs Ahmed further stated, “It is also crucial that MOFI sweat our investments and assets to derive the maximum value possible from these assets, unlock liquidity from government assets to contribute significantly towards the government’s revenue drive, and cut down on spending on government investments that are not contributing to government revenues or even supporting the government’s social and economic agenda.
“In summary, we must prioritize government investments and derive the highest return on investment from our assets, such as companies where the government owns a controlling stake, shares in private companies, built-up properties, undeveloped lands, machinery, and intangible assets such as mining rights, spectrum, names, copyrights, etc.
“Concluding, as we aim to gradually close the gap between the different classes to bring joy to a greater number of citizens, the FGN remains committed to ensuring accountability and transparency, and I am confident that at the end of this administration, Nigerians will have experienced the deserved change that we promised. I sincerely hope that the launch of MOFI today will mark the beginning of a new era”.
The President while naugurating the Governing Council, Board of Directors and an Executive Management, tasked them to raise the value of the MoFI’s portfolio from the current 18 trillion naira to 100 trillion naira by 2033.
Addressing the council, the President stated that the new leadership should take steps to mobilise capital and invest same in assets that are critical to the Federal Government’s revenue drive, to primarily convert the nations current assets into cash flow generating entities.
According to the President who is Chairman of the Governing Council alongside the Minister of Finance, Budget and National Planning, Zainab Ahmed as Vice Chair, the inauguration of the council has become necessary to optimize returns on existing investments.
