Ministry of Finance Incorporated (MOFI) has concluded plans to collate all assets and investments owned by the federal government locally and across the globe which will be captured in a National Assets Register set for launch later this year.
Armstrong Katang, CEO, MOFI, said the essence is to ultimately increase government revenue and even reduce debt burden by ensuring that all government owned assets and investments under its management are held accountable and performing optimally.
Speaking on Thursday at the Private-Public-Partnership units Consultative Forum in Abuja, Katang informed that MOFI has set a target to grow its Assets Under Management (AUM) to a minimum of N100 trillion over the next ten years from the current 18.3 trillion.
The CEO said MOFI will be identifying and acquiring companies with significant potential for growth and profitability, and within the next five years increase the number of companies under its portfolio by 15 percent. Currently, MOFI , which was incorporated since 1959 and has remained moribund for several years till its recent resuscitation has over 52 companies under its portfolio.
Katang added that MOFI will increase the economic impact of its portfolio companies by generating a minimum of $10 billion in additional GDP by 2033, through strategic investments and partnerships that drive innovation, productivity, and competitiveness.
By 2023, the CEO further said, MOFI’s contribution to funding the Federal Government budget will increase to 10 percent by identifying and investing in high-yield assets that generate significant returns.
He decried that over the years, there have been no visibility and transparency on what government owns, as most of these entities perform sub-optimally with no performance targets, no dividends paid or revenue generated for decades, while some are just lying idle, amid rising debt profile.
“Most entities owned by government performed sub-optimally over the years. Any property not generating revenue is a liability. In investment, no middle ground, you’re either creating value or destroying value, that is what we have experienced in the last few years. A lot of investment we made were just floating with no strategic direction”, Katang said.
The CEO also decried that even some entities funded or established using public debt are not contributing to debt servicing.
“We borrow money to fund a commercial entity, but the entity does not contribute to debt servicing, that clearly cannot continue”.
“If we have a commercial entity that was funded or established using public debt, they have the responsibility to contribute towards debt servicing. If they are not contributing towards debt servicing, then we will have to convert that debt into equity, it means that the entity needs to be generating money through dividend payment”, he said.
‘So the management of that entity will be held responsible for ensuring that they are creative in justifying how much money we have put in them, as a way to reduce our debt”, he further said.
The CEO stated that MOFI has the capacity to source and acquire funding for the growth and development
of all the companies under its portfolio.
Speaking further on the National Assets Register, he said it would be an inventory of all federal government assets; and the objective is to create a single window on assets and investments owned by the federal government.
He said the register will provide visibility on what assets to concession, get rid of, or put for joint venture to generate revenue
“The National Assets Register (NAR) is a tool that will enhance strategic oversight and management of the nation’s public wealth. To enhance the Federal Government’s capacity to grow revenue and maximize liquidity potential of its asset holdings and resource portfolio”.
The assets to be captured include; corporate assets, financial assets, fixed assets, intangible assets, oil and gas and solid minerals.
He therefore called for partnership with all MDAs engaged in PPP.
Earlier in his remarks, the director-general of ICRC, Michael Ohiani said the Infrastructure Concession Regulatory Commission (ICRC) have recorded applaudable success with PPPs since the inception of the Commission in 2010 to date
He informed that a total of 103 PPP projects have been approved by the Federal Executive Council (FEC) within the period, and these projects would bring in private capital investments of almost N11trillion (approximately $24 billion) and a projected revenue of over N3 trillion and $38 billion for the Country.
The DG also informed that 203 are projects at different stages in the
Development and procurement phases, and the ICRC is providing the needed regulatory oversight for about 82 projects at the implementation phase.
“Let me reiterate our commitment to continue build PPP capacity
across MDAs and the nation as a whole using our Institute, the “Nigeria Institute of Infrastructure and Public Private Partnership (NII3P)”, he assured.
