The Nigerian Government through the Ministry of Finance Incorporated (MOFI) announced it is partnering with the Nigerian Exchange Ltd., (NGX) to grow its Assets Under Management (AUM) from N18 trillion to N100 trillion within the next 10 years.
This was disclosed by Dr Armstrong Takang, Chief Executive Officer (CEO), MOFI, during the Closing Gong Ceremony, at the NGX trading floor in Lagos.
Takang added that the FG sees a major role that the capital market, driven by the NGX plays in economic growth.
Partnership
Dr Armstrong Takang, Chief Executive Officer (CEO), MOFI said the partnership was geared toward developing a roadmap to bring some of the entities under its management to the capital market for trading.
He also noted that MOFI and the NGX leadership team would establish a timeline and modalities to achieve the laid down objective in the interest of both parties and the broader economy.
- “We see a major role that the capital market, driven by the NGX plays in economic growth.
- “MOFI, being an integral part of the Federal Government, in terms of managing its investments and assets, needs to contribute towards economic growth.
- “We need to forge relationships with any entity or stakeholder that will help us deliver on that mandate, and that is why we are here, ”.
N100 trillion AUM
Takang added that the government has an interest in a lot of entities, which is why MOFI being repositioned, had to do a re-assessment of some of the corporate assets, noting this had brought the net asset value of some of the assets to N18 trillion.
- “The target given to the organisation as a team is to grow the AUM from N18 trillion to N100 trillion within the next 10 years.
He also added that there were some assets that the country was really not optimising well, urging that with the right structures, capital deployed, right management and governance, the value of the assets would be increased.
- “the increment will come from optimisation and providing additional capital to the existing assets.
- “We have a number of government-owned assets that are not yet captured, such as our infrastructural asset, a large percentage of the oil and gas asset and the real estate asset.
- “Also, our concession asset, financial asset and a lot of intangible assets, especially in the technological space are not included.
- “We believe that by the time we go through a proper enumeration process of these different asset classes, do the valuation, profile them and work with transactional advisers, we will get closer to our target.
He also urged that the fact that there is a regulatory arm of NGX, gives the FG more confidence to say confidently to its shareholders that their assets are safe because there is someone whose main job is to ensure that their assets are protected.
Mr Temi Popoola, CEO of NGX, lauded MOFI for its strategic engagement and its continuous support and commitment to the market, he said:
- “Many of these companies also need capital, hence, the capital market is the right place for them to meet some of those capital needs.
- “The MOFI’s partnership will also help the capital market to deepen and develop new products, through their base, such as the digital assets, real estate portfolio and several others assets,”
