The Senate has initiated a significant legislative measure to establish a modern, transparent, and professionally driven framework for the Ministry of Finance Incorporated (MOFI).
The Red Chamber has passed for a second reading a bill to repeal the MOFI Act and introduce the MOFI 2025 Act, sponsored by Senator Sani Musa (APC Niger East).
In his debate on the bill’s general principles, Senator Musa highlighted that the MOFI Act, established 65 years ago as the federal government’s investment holding company, has merely functioned as a passive custodian of government assets. He noted that it lacks the necessary authority, government structure, and institutional capacity.
He stated, “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 proposed legislation aims to replace the 1959 statute with a modern legal framework 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,” Musa added.
The bill aims to empower MOFI to actively manage government assets, invest in domestic and international markets, engage in public-private partnerships, and utilize innovative financial instruments, such as securitization, bond issuance, and special purpose vehicles.
The bill mandates that all MOFI investments comply with environmental, social, and governance standards, ensuring ethical, sustainable, and responsible investment decisions.
Sani emphasized that the bill is designed to channel investments into high-impact sectors like technology, agriculture, manufacturing, infrastructure, and other growth-driven areas, thereby reducing reliance on oil revenues and generating new economic opportunities.
Senator Abdulahi Yahaya (APC Kebbi North) contributed by highlighting the potential benefits of merging the MOFI Act with the Sovereign Wealth Fund Act to create a single operational act to oversee federal government investments and assets, thus avoiding duplication of roles.
Senator Adetukunbo Abiru (APC Lagos East) described the bill as long overdue and advised MOFI to develop a comprehensive database of all federal government investments both nationally and internationally.
Senator Abdul Ningi (PDP Bauchi Central) called the bill a landmark piece of legislation, noting no modifications have been made to the bill in 66 years, and described the move to repeal and reenact the bill as timely.
After the second reading, Senate President Godswill Akpabio referred the bill to the Senate Committee on Finance for further legislative review, requesting a report back within four weeks.
