The Chief Executive Officer (CEO) of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang has clarified that the role of MOFI in the 11 Distribution Companies was not to directly take over and run the corporate entities created around the Federal Government assets.
Dr. Takang however, disclosed that MOFI’s role was rather to work with its co-promoters and co-shareholders to develop and implement corporate policies and practices that ensure that the assets are operated for maximum value.
Recall that the Federal Government recently transferred its 40 percent shareholding in the 11 DisCos from the Bureau of Public Enterprises (BPE) to MOFI.
MOFI CEO in a statement on Monday said, MOFI has been reformed and restructured from a Unit in the Office of the Accountant-General to a full-fledged public sector (FGN) asset management corporation.
He said, this arose from the recognition that FGN assets across practically all economic sectors nominally valued at very significant sums were largely moribund or grossly underutilized and poorly managed.
Consequently, it was determined in 2021 by the then Minister of Finance, amongst other relevant decisions, that MOFI would adopt a new, value-driven strategic direction in aggregating and managing FGN assets.
He said, “it was further determined that in line with global best practice, MOFI would take on an expanded and more active role, not to directly take over and run the corporate entities created around these FG assets but rather to work with its co-promoters and co-shareholders to develop and implement corporate policies and practices that ensure that these assets are operated for maximum value.
“This revitalised strategy is underpinned by a three-point agenda of establishing and confirming state ownership, professionalising state ownership, and strategic resource mobilisation and investment.
“The process of reform and restructuring leads to the consolidation and assumption of the ownership rights of MOFI’s shareholdings across various asset classes.
“This strengthens the FG’s shareholder rights and ensures that entities in which MOFI holds equity stakes fulfil their socio-economic responsibilities and generate substantial financial returns for the FGN”, Dr. Takang said.
He said, “MOFI’s resumption of its rights of management of the FG’s 40% shareholding in the eleven electricity distribution companies and the various equity stakes in related energy sector companies is an essential element of this consolidation.
“It will drive operating efficiency, best corporate governance practices and ultimately maximise the value derived from these electricity assets, in alignment with President Bola Ahmed Tinubu’s economic growth agenda”, he added.
