Chairman, House of Representatives’ Committee on Finance, Rep. Abiodun James Faleke, on Tuesday reiterated the 10th Assembly’s resolve to enhance the performance of the Ministry of Finance Incorporated (MOFI) and ensure adequate revenue generation for the government for sustainable national economic development.
Rep. Faleke gave the assurance in Abuja during a public hearing on a Bill for an Act to repeal the Ministry of Finance Incorporated Act, 2004, and any amendments thereto, and enact the Ministry of Finance Incorporated (Establishment etc.).
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 GCFRN 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.”
According to him, the amended Act aligns with economic realities by providing the necessary legislative frameworks to optimise the performance of MOFI in line with global best practices.
“The House Committee on Finance, National Assembly, has the power to make laws for the good order and governance of the country, as provided under Section 4 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
“Similarly, Order 20 Rule 54(1) (2a) & (c) of the Standing Orders of the 10th House of Representatives empowers the House Committee on Finance with oversight responsibility for the Ministry of Finance and its parastatals, as well as institutions responsible for government investments in banks, statutory corporations, and agencies.
“This public hearing, therefore, seeks to elicit input from MOFI as an entity and other stakeholders, as well as the general public, to enhance MOFI’s performance and ensure adequate revenue generation for the government for sustainable national economic development.
“It is against this backdrop that the House of Representatives referred the MOFI Bill to the House Committee on Finance as the lead committee to discharge legislative functions on the Bill, together with the Committee on Public Assets, and revert to the House with necessary recommendations for passage.
“Consequently, the House Committee on Finance considers this public hearing a veritable legislative platform to galvanise public opinion on the way forward in the discharge of its legislative assignment to ensure effective passage of the Bill.”
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.
He specifically applauded Rep. Faleke-led Committee on Finance for ensuring “speedy consideration and passage of the tax bills submitted to the House by the President.
“Your committee has since become a leading example among others. This public hearing is another important milestone in restructuring our finance sector, and I hope the deliberations will yield the desired outcome to ensure swift legislative action on the Act.
“We are here today as part of our critical legislative responsibilities to review and deliberate on the amendment of the aforementioned finance law to reposition it to comply with extant financial regulations and laws. Established in 1959 and updated in 2004, the existing laws empowered the Ministry of Finance Incorporated (MOFI) to enter into commercial transactions on behalf of the Federal Government of Nigeria.
“However, the agency, in its operations, has consistently failed to act in compliance with the laws and best practices and therefore requires strengthening to act more transparently on behalf of the Federal Government of Nigeria.
“This public hearing provides a platform for you to make your contributions as stakeholders, experts, and interested parties to assist the House in repealing the Act and aligning it with contemporary realities.
“As lawmakers, our three cardinal responsibilities are oversight, lawmaking, and representation. Public hearings such as this are an integral part of our representative role, enabling citizens and stakeholders to contribute directly to the making, amendment, or repeal of laws that affect us all.”
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