The Senate has taken a major legislative action to make provisions for modern, transparent and professionally driven framework for the Ministry of Finance Incorporated, MOFI.
Specifically, the Red Chamber passed for second reading, a bill for an act to repeal the MOFI Act and re-enact the MOFI 2025 Act, sponsored by Senator Sani Musa (APC Niger East).
Leading debate on the general principles of the bill, Senator Musa said the MOFI Act was established 65 years ago as the federal government’s investment holding company, but has been operating merely as a passive custodian of government assets, adding that it lacks necessary authority, government structure, and institutional capacity.
He said: “The result is that the federation has continued to lose significant revenue due to ownership structures, and weak oversight mechanisms.
“The bill seeks to transform MOFI from a dormant custodian into a strategic, professional and transparent institution capable of driving national wealth creation.
“The bill seeks to replace the 1959 legislation with a modern statute aligned with contemporary investment governance standards and global best practices.
“It seeks to establish a competent and professional group of directors with clear oversight obligations and supported by mandatory annual external audits and transparent reporting.”
He said the bill sought to empower MOFI to actively manage government assets, invest in domestic and international markets, enter public-private partnership and utilise innovative financial instruments,such as securitisation, bond issuance and special purpose vehicles.
He said the bill has the mandate to ensure that all MOFI investments comply with environmental,social, and governance standards,guaranteeing ethical, sustainable and responsible investment decisions.
Sani said the bill was designed to channel investment into high-impact sectors like technology, agriculture, manufacturing,infrastructure and other growth-driven areas, thereby reducing reliance on oil revenues and generating new economic opportunities.
In his contribution, Senator Abdulahi Yahaya (APC Kebbi North) said the bill was germane saying that it would be important for senate to consider the merging of the MOFI Act and the Sovereign Wealth Fund Act together to make for one operational act to oversee and handle the investments and assets of the federal government.
This, he said, would avoid duplication and in the discharge of roles and custodian of federal government investments and assets.
Also, Senator Adetukunbo Abiru (APC Lagos East),who described the bill as long over due advised MOFI to work toward producing a database of all investments of the federal government across the nation’s and beyond.
In his own, Senator Abudl Ningi (PDP Bauchi Central) said the bill was a landmark legislation, saying that no modification was made on the bill for 66 years, describing the move to repeal and re-enact the bill as apt.
President of the Senate, Godswill Akpabio, after second reading of the bill referred it to the Senate Committee on Finance for further legislative input and report back in four weeks.
