Dr. Armstrong Takang, Managing Director of the Ministry of Finance Incorporated (MOFI), has raised concerns over the lack of dividend payouts from many of Nigeria’s corporate assets. Speaking at the launch of the 2023 Nigerian Banking Sector Report by Afrinvest West Africa in Lagos, Dr. Takang highlighted the need for domestic resource mobilization.
Representing the Minister of Finance and Coordinating Minister of Economy, Wale Edun, Dr. Takang emphasized, “While we depend on external sources, we must take steps for domestic resource mobilization. A few months ago, we had a meeting with the World Bank President, who stressed the importance of being proactive and deliberate about mobilizing domestic resources. It is very expensive to raise capital from abroad, whereas we have resources at home that we can mobilize. We have a plethora of resources across different asset classes that have been lying moribund for years. Many of our corporate assets have not been paying dividends. We have significant real estate both at home and abroad that is not yielding any revenue for us. They are not even being used. The utility value is very low. That has to change.”
He also addressed the underperformance of assets in the oil and gas sector, advocating for a renewed focus and strategy to harness their potential. “We have oil and gas assets which have been performing sub-optimally for decades. Licenses were given to people 10-15 years ago, and they have not invested a dime in developing those assets, whereas other investors are eager to invest. We need to determine how best to optimize these assets to deliver value. It will be cheaper for us than relying on external borrowing,” Dr. Takang said.
In August, MOFI engaged with capital market stakeholders, aiming to increase the value of Assets Under Management from N18 trillion to N100 trillion in the next 10 years. Speaking to stockbrokers at the Nigerian Exchange Limited, Dr. Takang stated, “We have come to collaborate with the entire stakeholders in the capital market—from the Chartered Institute of Stockbrokers (CIS), Association of Stockbroking Houses of Nigeria, NGX, and stockbrokers—to see how we can revive the moribund government assets and list them on the stock exchanges in a more transparent manner that will lead to transformation and create value for the economy.”
