Reps: Committee Pledges (MOFI) Act Will Align With Global Practices

The House of Representatives Committee on Finance has assured Nigerians that the amended Ministry of Finance Incorporated (MOFI) Act will align with economic realities and provide the necessary legislative frameworks to optimize MOFI’s performance in line with global best practices.

Chairman of the committee, Abiodun Faleke stated this in Abuja during a public hearing on a bill to repeal and re-enact the MOFI Act 2024.

“The proposed legislation is titled: “A Bill for an Act to Repeal the Ministry of Finance Incorporated Act, Cap. M229, Laws of the Federation of Nigeria, 2004, and Enact the Ministry of Finance Incorporated (Establishment, Etc.) Bill, and for Related Matters (HB. 986).” +According to the Lawmaker, the committee is reviewing the bill, to ensure MOFI’s performance and ensuring adequate revenue generation for sustainable national economic development.

He explained that the MOFI Act, 2004, originated with the establishment of MOFI as a corporate sole in 1959 to manage federal government investments, estates, easements, and rights, acquire holdings, and dispose of property, as well as to secure payment of loans by entering into contracts, signing, sealing, executing, and perfecting documents for loan repayment by the government.

“The minister vests property in public officers or authorities by order, transferring ownership without conveyance or transfer. However, it failed to meet its mandate due to a lack of adequate organisational structure and effectiveness.

“Owing to the obvious lapses and lacunae in 1959, MOFI underwent strategic restructuring in 2023, transforming from a passive asset holder into a proactive investment institution modelled after global leaders like Temasek Holdings. Currently, it manages key investment portfolios, including energy, infrastructure, financial services, and emerging industries.

“With the establishment of MOFI as a corporation vide Section 29 (3) – (5) of the Finance Act 2023, President Bola Ahmed Tinubu appointed the new board and management team led by Dr Armstrong Ume Takang, Managing Director/CEO, with a renewed mandate to redefine government asset management, foster greater efficiency, accountability, and long-term economic impact. Consequently, it was moved from the office of the Accountant-General of the Federation to an independent functional corporation for better management of Nigeria’s assets.”

While declaring the public hearing open, Speaker Abbas Tajudeen pledged the House’s resolve to shape the future of the country’s financial governance framework.

Represented by Billy Osawaru from Edo State, Dr Abbas specifically applauded Faleke-led Committee on Finance for ensuring speedy consideration and passage of the tax bills submitted to the House by the President.

Also Speaking, Managing Director of MOFI, Dr. Armstrong Takang, said the agency has significantly grown the asset base under its management from N1.25 trillion in early 2023 to over N18 trillion through structural reforms, transparency initiatives, and better financial oversight.

However, he stressed that limitations persist due to outdated legal frameworks and the absence of formal mechanisms to account for non-corporate assets such as ports and critical infrastructure.

“Many of these infrastructure assets are not reflected in any register. Without a proper structure and legal backing, accountability and transparency become difficult to achieve,” he added.

Oduyemi Odumade