Bill to repeal MoF Incorporated Act passes second reading in Senate

The Senate has passed, for second reading, a bill for an act to repeal the Ministry of Finance Incorporated (MOFI) Act and reenact the Ministry of Finance Incorporated 2025 Act.

This followed the presentation of the bill’s general principles at plenary on Tuesday.

The bill, sponsored by Senator Mohammed Sani (APC-Niger), was designed to make for a modern, transparent, and professionally driven framework for MOFI.

Mr Sani, in his lead debate, said the bill sought to repeal the MOFI Act of 1959 and to re-enact a modern, robust legal framework that reflects Nigeria’s current economic realities and global best practices.

He said the act was established 65 years ago as the federal government’s investment holding company. He, however, said that under the existing act, MOFI operates merely as a passive custodian of government assets, lacking the necessary authority, government structure, and institutional capacity.

“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,” the lawmaker said.

He said the bill also sought to empower MOFI to actively manage government assets, invest in domestic and international markets, enter into public-private partnerships, and utilise innovative financial instruments, such as securitisation, bond issuance, and special-purpose vehicles.

The lawmaker said the bill was designed to channel investment into high-impact sectors such as technology, agriculture, manufacturing, infrastructure, and other growth-driven areas, thereby reducing reliance on oil revenues and generating new economic opportunities.

He said the identified weaknesses undermine Nigeria’s ability to generate value from public assets and prevent MOFI from contributing meaningfully to economic growth.

“In Singapore, Singapore’s Temasek Holdings, valued at more than $382 billion, operates with an independent board, full public disclosures, and diversified investment portfolios.

“In Norway, the Sovereign Wealth Fund manages more than $1.4 trillion and is renowned for transparency, ethical guidelines, and rigorous parliamentary oversight.

“This bill draws inspiration from such global models, adapting the principles of governance, transparency, and performance,” Mr Sani said.

Mr Sani said the reforms would help Nigeria transition from a dependent, volatile revenue base to a diversified, asset-powered economy, urging lawmakers to support the second reading of the bill.

Senator Abdulahi Yahaya (APC-Kebbi) said the bill was germane and that it would be important for the Senate to consider merging the MOFI Act and the Sovereign Wealth Fund Act.

Mr Yahaya said this would constitute a single operational act to oversee and manage the federal government’s investments and assets.

Senator Adetukunbo Abiru (APC-Lagos), who described the bill as long overdue, advised MOFI to work towards establishing a database of all federal government investments across the nation and beyond.

Senator Abudl Ningi (PDP-Bauchi) said the bill was a landmark legislation, noting that no modification had been made to it for 65 years, and describing the move to repeal and re-enact it as apt.

Senate President Godswill Akpabio, after the second reading of the bill, referred it to the Senate Committee on Finance for further legislative inputs and to return to plenary in four weeks.

(NAN)