Abuja: Senate has passed for second reading, a bill for an act to repeal the Ministry of Finance Incorporated (MOFI) Act and re-enact the Ministry of Finance Incorporated 2025 Act. This followed presentation of the general principles of the bill at plenary.
According to News Agency of Nigeria, the bill, sponsored by Sen. Mohammed Sani (APC-Niger), was designed to make for a modern, transparent, and professionally driven framework for MOFI. Sani, in his lead debate, stated that the bill sought to repeal the MOFI Act of 1959 and re-enact a modern, robust legal framework reflecting current economic realities of Nigeria and global best practices.
He explained that the act was established 65 years ago as the Federal Government’s investment holding company. However, under the existing act, MOFI operates merely as a passive custodian of government assets, lacking necessary authority, government structure, and institutional capacity.
“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,” Sani remarked.
The bill aims to replace the 1959 legislation with a modern statute 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, supported by mandatory annual external audits and transparent reporting.
Sani further indicated that the bill intends to empower MOFI to actively manage government assets, invest in domestic and international markets, enter public-private partnerships, and utilise innovative financial instruments, such as securitisation, 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.
The bill is designed to channel investment 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.
“MOFI Act of 1959 is clearly no longer fit for purpose. It suffers from a narrow and outdated mandate, weak and unclear governance structure, restrictive investment authority, limited transparency, and accountability,” Sani noted.
He highlighted that these weaknesses undermine Nigeria’s ability to generate value from public assets, preventing MOFI from contributing meaningfully to economic growth. Sani drew comparisons with global models like Singapore’s Temasek Holdings and Norway’s Sovereign Wealth Fund, emphasizing the importance of governance, transparency, and performance.
“The Ministry of Finance Incorporated MOFI Bill 2025 represents a bold step towards modernising Nigeria’s public investment and architecture. By reigniting this 65-year-old law, we are strengthening governance, enhancing transparency, maximising national assets, and driving sustainable wealth creation for generations to come,” Sani stated, urging lawmakers to support the bill.
Sen. Abdulahi Yahaya (APC-Kebbi) expressed that the bill was important and suggested considering the merging of the MOFI Act and the Sovereign Wealth Fund Act to make for one operational act to oversee and handle the investments and assets of the Federal Government, thus avoiding duplication in roles.
Sen. Adetukunbo Abiru (APC-Lagos) advised MOFI to work towards producing a database of all Federal Government investments nationwide and beyond. Sen. Abudl Ningi (PDP-Bauchi) described the bill as landmark legislation, noting the lack of modification for 65 years and calling the move to repeal and re-enact the bill apt.