The Ministry of Finance Incorporated (MOFI), which serves as the specialized investment vehicle and custodian agency for the Federal Government of Nigeria, has recently unveiled its plan to identify, revitalize, and subsequently list all moribund government assets on the various stock markets within the nation. During a recent visit to the Nigerian Exchange Limited (NGX), Dr. Amstrong Takang, the Managing Director/Chief Executive Officer of MOFI, elaborated on the aforementioned plan. He stated MOFI ambitious objective to increase its Asset Under Management (AUM) to a minimum of N100 trillion, a substantial leap from its current standing at N18 trillion, over the next 10 years.
This effort is anticipated to yield a significant economic influence on the populace of Nigeria. Addressing the capital market stakeholders on the purpose of the visit, he said the plan is to collaborate with all stakeholders involved, including the Chartered Institute of Stockbrokers (CIS), the Association of Stockbroking Houses of Nigeria (ASHON), the NGX, and other stockbrokers. The primary objective is to revitalize moribund government assets and list them on the stock market driven by a commitment to transparency, aiming to effect transformative changes that will generate substantial economic value.
MOFI seeks to professionalize public wealth management.
Dr. Takang stated that MOFI would have high objectives and take a more proactive role in helping to build a prosperous economy for its contributors and beneficiaries. They also seek to professionalize the public wealth management and also make the most of the present opportunity for expanding their investments. However, a lackadaisical strategy to manage the country’s wealth would not set the stage for economic growth. MOFI broad objective is to spur expansion in all sectors. He also noted that there is a void in the country’s earning potential and ample opportunities for positioning their investment portfolio.
Speaking during the Closing Gong Ceremony for MOFI engagement with capital market stakeholders, held at the NGX trading floor in Lagos, Dr. Takang stated that NGX, the CIS, and the ASHON have shown their readiness to work hand in hand with MOFI to foster market development and listings. MOFI plans to collaborate with NGX to support companies in fulfilling the Exchange’s governance, operational, and reporting requirements for listing. He also noted that this action advances MOFI goal of professionalizing Government Owned (GOE) and Government Linked Entities (GLE), he added.
NGX is willing and ready to work with MOFI to improve capital access.
Chief Executive Officer, NGX, Temi Popoola gave MOFI high praise for its role as the government’s investment and asset custodian, and further emphasized that NGX is willing and ready to work with MOFI to improve capital access for listed entities and progress Nigeria’s capital markets. He said the cooperation would allow the capital market to contribute significantly to President Bola Tinubu’s plan to expand the economy. Popoola remarked that the current period is quite interesting because of the increased involvement of local investors in the market.
A vast of foreign capital, along with recent strengthening and improvements, has led to an optimistic outlook, according to Popoola, who claims that the market is now ready to support a wide range of government initiatives. The custodian agency looks forward to collaborations towards the effort of developing the market. Oluwole Adeosun, the CIS director general, expressed the institute’s enthusiasm for the collaboration and vowed cooperation with MOFI, especially in the areas of capacity development and other market-related projects.
Nigerian economy would benefit beyond financial benefits.
Chairman of ASHON, Sam Onukwue observed that the collaboration’s influence on the Nigerian economy would transcend just financial benefits, to encompass a wider spectrum of socio-economic advantages that actively contribute to the noble cause of sustainable development. Tinuade Awe, the Chief Executive Officer of NGX Regulation Limited (NGX RegCo), emphasized the unwavering dedication of the regulatory organization to fostering a harmonious partnership with the MOFI in the context of transparency, safeguarding the interests of investors, and effectively mitigating potential systemic risks.