FG-owned assets worth N38.3tn under MOFI audit as reforms deepen

The federal government’s investment assets, valued at N38.3 trillion, are currently undergoing audit and reform under the stewardship of the Ministry of Finance Incorporated (MOFI), as part of a wider push to instil corporate governance and transparency across Nigeria’s public enterprises.

Dr. Armstrong Takang, the CEO, Ministry of Finance Incorporated (MOFI), disclosed this at the formal launch of guidelines on corporate governance for the Nigerian telecommunications industry in Lagos on Wednesday.

Takang said the ongoing audit, which began in 2023, has already uncovered far-reaching gaps in the documentation and valuation of federal government holdings, adding that the initiative aims to establish a comprehensive national asset register and push government-owned commercial entities to adopt performance-based governance standards.

“When we started this exercise, the information on record indicated only about N1.5 trillion in book value for FG-owned investments. Today, we have compiled verified data from about 20 assets, and the net asset value already exceeds N38.3 trillion, without including major infrastructure holdings,” he explained.

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The MOFI reform effort underscores a critical departure from decades of value erosion in state-owned enterprises (SOEs), many of which have failed to deliver returns on significant public investments. Examples cited include Nigerian Airways, Ajaokuta Steel, Delta Steel, and NITEL; projects that gulped billions of dollars but failed to thrive due to poor governance, lack of accountability, and minimal transparency.

“Many of the entities failed because the people charged with managing them did not feel accountable. There was no transparency, no published financials, and little effort to deliver value to shareholders, which, in this case, is the Nigerian people,” Takang lamented.

The reform agenda now focuses on three core principles for public investments, which are capital appreciation (measuring the year-on-year growth in the value of federal government equity), dividend performance (ensuring the government gets a return on its holdings) and liquidity and impact (ensuring these enterprises are financially healthy and deliver public value).

MOFI has launched a Corporate Governance Scorecard, which will be used to evaluate all FG-owned enterprises annually. An independent panel made up of institutional representatives from the Financial Reporting Council (FRC), the Society for Corporate Governance Nigeria, and the Institute of Directors, will oversee the assessment. The findings will be unveiled at the inaugural MOFI Excellence Awards, set to recognise agencies and boards demonstrating high standards of transparency, accountability, and performance.

The audit and scorecard initiative comes amid rising concerns that governance failures are at the heart of Nigeria’s economic stagnation. According to MOFI, improving governance within public enterprises is not just about avoiding past mistakes; it is key to Nigeria’s future competitiveness.

“There are 19 countries in the trillion-dollar economy club. None are African. If Nigeria wants to be a member, we must act like a Premier League nation, not a third division country. Corporate governance is not theoretical. It is the backbone of strong institutions, and without strong institutions, there is no strong economy,” he added.

Takang further explained that the value of these government assets could, if listed, rival the entire current market capitalisation of the Nigerian Stock Exchange (NSE), which stood at N19 trillion as of July 2025. Two telecommunications companies alone accounted for over 21 percent of the NSE’s market cap, with the sector also ranking among the top 15 taxpayers in the country. “That shows you how strategic the sector has become,” he said.

He emphasised that the influence of telecoms goes far beyond the stock market, noting that the industry supports hundreds of thousands of jobs across energy, technology, logistics, and retail. “We often forget that this is infrastructure that runs 24/7. People rely on it to do business, to communicate, to move money. The knock-on economic effect is massive,” he explained.

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He also pointed out that telecom companies are consistently among Nigeria’s top 15 taxpayers, underlining their fiscal importance.

However, despite its economic weight, the sector has not been immune to the pitfalls of weak governance, even as Takang warned that the lack of robust corporate governance structures could threaten long-term sustainability. “This sector is too critical to be left without proper governance. That’s why the NCC’s move to update the telecom governance code is not just timely, it js urgent,” he said, referring to the Nigerian Communications Commission’s revised 2025 Guidelines on Corporate Governance.

Takang, therefore, expressed hope that more indigenous telecom operators will emerge and voluntarily adopt high governance standards. “If we are serious about building world-class Nigerian telecom brands, then subjecting them to governance frameworks must be non-negotiable. This is not just about compliance; it is about competitiveness, capital formation, and long-term legacy,” he averred.

Dr. Aminu Maida, the executive vice chairman of the NCC, said the new framework is not just about compliance but securing the long-term sustainability of telecom businesses, networks, and investor confidence.

Maida stressed that corporate governance is no longer a soft requirement but a strategic necessity for telcos operating in an environment defined by cybersecurity threats, energy constraints, climate pressures, and rising customer expectations.

He noted that under the new regime, telecom operators must now ensure balanced board structures, enhanced transparency, and tighter internal controls. “Board composition must reflect executive, non-executive, and independent directors with demonstrated expertise in ICT and cybersecurity,” he added.

He also announced the formal recognition of regulatory officers within licensees’ operations as key contacts for compliance reporting.

A central focus of the guidelines is the strengthening of audit functions and risk control systems across telecom companies. The NCC now requires operators to systematically identify and mitigate material risks, with oversight provided by empowered internal audit teams. Licensees will be expected to submit mid-year and annual compliance reports certified by their boards.

These measures, Maida said, aim to ensure that telecom boards and management teams are configured to deliver reliable services, ensure supply chain integrity, and reduce operational vulnerabilities.

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Maida disclosed that the Commission conducted a comprehensive analysis correlating governance quality with financial performance, service reliability, and regulatory compliance, adding that the findings were clear and compelling as companies with stronger corporate governance outperformed their peers on all indicators.

He stressed that the new enforcement regime is evidence-based and designed to reward transparency, discipline, and responsible leadership.

The NCC emphasised that while the guidelines will be implemented in phases based on license classes, enforcement will be firm. Where licensees fail to meet compliance obligations within stipulated remediation windows, the Commission will escalate sanctions.

While acknowledging the inevitable short-term disruptions that stricter governance may bring, Maida maintains that the long-term benefits far outweigh the cost, while pledging continued support to licensees through supervision, guidance, and capacity building.

Maida, therefore, advised operators to view the guidelines not as a burden but as a tool for long-term value creation, for investors, consumers, and the national economy. “The telecoms sector, now central to Nigeria’s commerce, finance, education, and public services, must evolve with the demands of the digital age. With over 200 million subscriptions and growing economic significance, corporate governance must rise to meet the sector’s scale and complexity,” he affirmed.

Royal Ibeh

Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.

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