The Ministry of Finance Incorporated (MOFI) announced on Monday that it is resuming its management rights over the federal government’s 40 percent shareholding in Nigeria’s eleven electricity distribution companies (DisCos).
In a statement signed by MOFI Managing Director and Chief Executive Officer Armstrong Takang, the ministry revealed it is taking significant steps to ensure these assets deliver full value to the country. The statement highlighted that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had ordered the MOFI board of directors to terminate the Power of Attorney (POA) granted to the Bureau of Public Enterprises (BPE) in 2012.
The authorisation allows MOFI to assume ownership, control, and management of all outstanding Federal Government of Nigeria (FGN) equity in all existing electricity successor companies.
Mr. Takang explained that over the past 24 months, especially following the amendment of the MOFI Act by the Finance Act of 2023, MOFI has transformed from a unit within the office of the accountant-general to a full-fledged public sector asset management corporation. This change arose from the recognition that FGN assets across various economic sectors, despite their significant nominal value, were largely moribund or grossly underutilized and poorly managed.
In 2021, the then Minister of Finance determined that MOFI should adopt a new, value-driven strategic direction in aggregating and managing FGN assets. This involved restructuring MOFI into an active asset management corporation, developing a national assets register to aggregate and profile all national assets and investments, and creating policies and regulations to manage assets from debt-related transactions.
The resumption of MOFI’s management rights is seen as a crucial step in revitalizing the country’s electricity distribution sector and ensuring the federal government’s investments yield optimal returns.
