Finance Ministry Amendment Bill Advances to Second Reading

On Tuesday, the House of Representatives approved the second reading of a bill to repeal the Ministry of Finance Incorporated (MOFI) Act of 1959 and its subsequent amendments, introducing the new Ministry of Finance Incorporated (Establishment) Act, 2023. The bill, sponsored by Ademorin Kuye, the representative for Shomolu Federal Constituency in Lagos State, seeks to enhance the management, accountability, and ownership of federal government assets.

MOFI, originally established in 1959, has served as the sole custodian of federal assets. However, Kuye argued that it has failed to meet public expectations, citing issues such as the mismanagement, misappropriation, and abuse of government assets throughout the country. He emphasized that the existing 1959 Act, which consists of only six sections, is inadequate for managing the nation’s vast and complex assets in today’s environment.

The proposed bill introduces a comprehensive framework with 49 sections to better govern the management and use of federal government assets. Once enacted, the new legislation would revitalize MOFI by establishing a more robust institutional framework designed to enhance corporate governance and operational efficiency.

Kuye explained that the new Act would lay a strong legal foundation for the creation of a national corporation capable of managing over N300 trillion worth of federal assets. The bill would grant MOFI additional powers and ensure the board is properly incentivized.

Among the key provisions of the bill, Section 3 outlines the objectives of empowering MOFI to inventory and assess all federal assets, ensure their sustainability, develop a national asset management strategy, and act as the primary investment vehicle for government holdings. Additionally, the bill proposes the creation of a national asset register, which would maintain an accurate record of government assets, liabilities, values, locations, and depreciation.

The bill also includes provisions for the efficient control, management, and disposal of government assets. It grants the Minister of Finance the authority to issue guidelines and policies for MOFI’s investment activities and sets out the legal framework for proceedings in the Federal High Court.

Kuye highlighted that the bill would drive increased revenue generation, reduce financial leakages, and enhance the value of the nation’s asset portfolio. Currently, MOFI’s registered assets total N18 trillion, but with the new national asset register, a comprehensive census of government holdings could potentially raise the value to N350 trillion, significantly boosting the national economy.