On Tuesday, the House of Representatives passed a Bill for the second reading aimed at repealing the Ministry of Finance Incorporated Act of 1959 and replacing it with a modernised Ministry of Finance Act 2024.
Leading the debate during plenary, Hon. Ademorin Kuye highlighted the need to revamp the outdated framework governing the Ministry of Finance Incorporated (MoFI), the entity responsible for managing Federal Government assets across Nigeria. Established in 1959, MoFI has struggled to fulfill its mandate due to an inadequate legal framework, Kuye explained.
“The 1959 Act, with its mere six sections, lacks the tools needed for MoFI to effectively manage the nation’s assets in today’s Nigeria,” Kuye stated. He pointed to years of mismanagement, misappropriation, and neglect of federal assets as evidence of the urgent need for reform.
The proposed Ministry of Finance Act 2024 introduces 49 comprehensive sections designed to modernize MoFI’s operations, governance, and management structure. Kuye emphasized that the new legislation would provide the corporation with the authority and institutional support required to efficiently oversee and optimize federal assets valued at over ₦300 trillion.
Key features of the Bill include:
• Strengthening corporate governance within MoFI.
• Enhancing accountability and transparency in asset management.
• Empowering MoFI to act as a key driver of economic growth by ensuring the efficient use of government-owned resources.
• Establishing a properly incentivized board to oversee MoFI’s operations.
“The Bill will reinvigorate MoFI, transforming it into a truly national corporation capable of managing and optimizing government assets, while ensuring accountability and preventing redundancy or abandonment,” Kuye added.
The House will continue deliberations on the Bill in subsequent readings, as lawmakers expressed optimism about its potential to unlock the economic value of federal government assets and curb long-standing inefficiencies in their management.
