In a significant legislative move aimed at reforming Nigeria’s approach to public asset management, the Senate has commenced the process of repealing and re-enacting the Ministry of Finance Incorporated (MOFI) Act a law that has stood for more than six decades.
The bill, titled the Ministry of Finance Incorporated Act (Repeal and Re-enactment) Bill, 2025 (SB. 843), is spearheaded by Senator Sani Musa, who represents Niger East and serves as the chairman of the Senate Committee on Finance. It successfully passed its second reading during plenary on Tuesday, marking an important step in its legislative journey.
MOFI, established under the original 1959 Act, is the statutory corporation tasked with managing the federal government’s equity interests in a range of commercial ventures. Over the years, it has functioned as the legal custodian of government investments, empowered to enter into contracts, acquire property, and oversee assets on behalf of the federation.
However, critics and reform advocates have long argued that the existing legislation is outdated and ill-suited to the demands of a modern, dynamic economy. According to Senator Musa, the proposed law is not merely a bureaucratic update but a comprehensive overhaul designed to reposition MOFI as a central engine for national economic transformation.
“This bill is intended to reposition MOFI as a commercially-driven, performance-oriented institution that operates in line with international best practices for managing sovereign assets,” Musa said. “It’s a crucial step toward building a stronger, more accountable system for managing Nigeria’s public investments.”
At its core, the proposed legislation seeks to redefine the role of MOFI, establishing it as the central public investment and asset management agency for the federal government. The new framework is designed to modernize the institutional structure, instill transparency, and align MOFI’s operations with private-sector investment principles.
According to the Senate’s order paper, the bill includes provisions that would enhance oversight of government-owned enterprises (GOEs), strengthen governance mechanisms, and embed accountability at every level of MOFI’s operations. These reforms are intended to ensure that public investments deliver sustainable, long-term value for the country — not just in terms of profit, but as a strategic driver of national development goals.
Among the key innovations proposed are the modernization of asset management strategies, the adoption of private-sector efficiency standards, and the implementation of rigorous performance metrics. Together, these reforms aim to turn MOFI into a high-performing entity capable of maximizing returns on state assets while contributing to Nigeria’s broader fiscal and economic agenda.
For a country grappling with revenue challenges and increasing demands for transparency in governance, the MOFI reform initiative could represent a pivotal moment. By reshaping how public assets are managed and setting a new standard for accountability, the bill has the potential to unlock untapped value in Nigeria’s state-owned enterprises and drive economic transformation from within.
The next steps for the bill include detailed consideration by Senate committees, potential public hearings, and eventual harmonization with the House of Representatives. If passed and signed into law, it would replace a 66-year-old framework with a modern, globally aligned approach to public investment a development many observers believe is long overdue.
