MOFI Partners NGX to Drive FG’s Assets to N100trn in 10 years

Kayode Tokede

The Ministry of Finance Incorporated (MOFI), yesterday disclosed that it is partnering with The Nigerian Exchange Limited (NGX) to drive the federal government assets base to N100 trillion from N18 trillion in the next 10 years.

The Managing Director, MOFI, Mr. Amstrong Takang who disclosed this in Lagos during an engagement meeting with capital market stakeholders said the federal government’s investment vehicle company currently has about 40 corporate assets valued at N18trillion.

He said that the mandate given to MOFI management is to grow its assets base to N100trillion in the next 10 years, stressing that the set target cannot be achieved without collaborating with key capital market stakeholders.

Part of MOFI strategies pillar, according to him is to focus on professionalising state ownership aimed at ensuring that all state-owned entities are effectively and efficiently managed to achieve greater economic impact.

Others strategies pillar he highlighted are: a significant financial driver of the Nigerian economy, capacity to source and acquire funding for the growth and development of all the companies under its portfolio and committed to pursuing initiatives that generate profit and impact across all key

According to him, “So, anything that we’re doing here at the Exchange, the proceeds of that will contribute towards economic development.

“We are also expected to source funding for investments of government-owned entities as well as others which is why the capital market is important.

“We need to begin to use the capital market to mobilize capital for projects that either our portfolio companies or government wants to do. It’s not everything that we have to go and borrow money. The capital market is there for us to be able to tap into it. Other countries have done it. There’s really no reason why we can’t.

“A lot of infrastructure projects in the US were developed using money from the capital market why can’t we do the same thing. Why can’t some capital projects from our budget be funded through the capital markets? We need to be deliberate, intentional about it and that’s one of the reasons why we think we should be here to do that.”

He expressed optimism that by working with key capital market stakeholders, capital mobilization needed to develop the socio-economic development of Nigeria can be achieved.

He added that, “MOFI will work with the NGX to identify those entities that can be put on a path to listing. This process will enable the companies to commence the process of meeting those governance, operating, and reporting requirements that would qualify them for a listing

“While the listing of MOFI entities will increase the number of entities listed on the NGX, it presents a pathway to achieving one of MOFI’s key mandate of professionalizing Government-Owned and Government Linked entities (GOE and GLEs).”

The Chief Executive Officer, NGX, Mr. Temi Popoola, at the engagement meeting appreciated the management of MOFI for their continued commitment towards the growth of the capital market.

“NGX looks forward to working with MOFI to facilitate access to capital for listed entities and develop Nigeria’s capital market,” he said.

He added that: “This is an exciting time and you may have seen that our local investors really stepped up their participation in the market recently.

“We think that with a lot of foreign capital, together with the strengthening and enhancements that have been done, the market is ready to support many initiatives from the government. We really look forward to working together towards the support in developing our markets.”