Abuja: The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, announced that the Federal Government has introduced a mechanism to assess, monitor, and enhance the performance of State-Owned Enterprises (SOEs) in Nigeria. This initiative was revealed during the inauguration of the Corporate Governance Scorecard, organized by the Ministry of Finance Incorporated (MOFI) in collaboration with the World Bank.
According to News Agency of Nigeria, the new mechanism aims to improve transparency, accountability, and efficiency in managing public resources. The initiative will focus on evaluating SOE performance, identifying areas for improvement, and implementing reforms to boost productivity. Mr Edun emphasized that SOEs are integral to the national economic framework, influencing key sectors such as energy, infrastructure, telecommunications, and financial services. Despite their potential, SOEs have faced challenges due to inefficiencies and poor financial management.
Mr Edun highlighted the importance of a robust governance framework for managing SOEs and government-linked entities. He stated that the government, through MOFI, is undertaking strategic reforms to reposition SOEs for value creation. The MOFI corporate governance scorecard initiative is part of this effort to assess and enhance SOE performance.
The Minister of Power, Mr Adebayo Adelabu, also spoke at the event, underscoring the critical role of SOEs in delivering public services and supporting economic development. He noted the necessity for transformation in how these enterprises are governed, given the evolving complexities of Nigeria’s economy. Mr Adelabu mentioned the significant structural reform of unbundling the transmission company of Nigeria into two operational entities, reflecting a commitment to operational clarity and transparency.
Dr Shamsuddeen Usman, Chairman of the MOFI Board, stated that board members and management have adopted a corporate governance code of ethics to ensure transparency and professionalism. He added that independent third parties would handle the details of scorecard assessments.
Mr Ndiame Diop, World Bank Country Director for Nigeria, noted that SOEs play crucial roles in high-risk private investments and economic transformation. He emphasized that Nigeria’s strategic assets could significantly boost economic growth and government revenue.