The Senate of Nigeria has taken a significant legislative step toward establishing a modern, transparent, and professionally driven framework for the Ministry of Finance Incorporated.

Specifically, the Upper Chamber approved the second reading of “a bill for an act to repeal the MOFI Act and re-enact the MOFI 2025 Act,” which was sponsored by Senator Sani Musa (APC Niger East).

While introducing the bill’s general principles, Senator Musa highlighted that the original MOFI Act was instituted 65 years ago to serve as the federal government’s investment holding company. However, he noted that the institution has been “operating merely as a passive custodian of government assets,” and is deficient in “necessary authority, government structure, and institutional capacity.”

Senator Musa argued for the urgency of the reform, stating: “The result is that the federation has continued to lose significant revenue due to ownership structures, and weak oversight mechanisms.” He added that “The bill seeks to transform MOFI from a dormant custodian into a strategic, professional and transparent institution capable of driving national wealth creation.”

Further explaining the bill’s objectives, the sponsor noted: “The bill seeks to replace the 1959 legislation with a modern statute aligned with contemporary investment governance standards and global best practices.”

He also said: “It seeks to establish a competent and professional group of directors with clear oversight obligations and supported by mandatory annual external audits and transparent reporting.”

The bill is designed to grant MOFI the authority to actively manage government assets, invest in both domestic and international markets, participate in public-private partnerships, and leverage innovative financial instruments such as bond issuance, securitisation, and special purpose vehicles. He said the bill has the mandate to ensure that all MOFI investments “comply with environmental, social, and governance standards, guaranteeing ethical, sustainable and responsible investment decisions.”

Senator Musa stressed that the legislation is designed to direct investment into crucial, high-impact sectors like technology, infrastructure, agriculture, and manufacturing, thereby “reducing reliance on oil revenues and generating new economic opportunities.”

Contributing to the debate, Senator Abdulahi Yahaya (APC Kebbi North) described the bill as “germane” but proposed that the Senate should consider merging the MOFI Act and the Sovereign Wealth Fund Act into one operational act. He argued that this would effectively “avoid duplication and in the discharge of roles and custodian of federal government investments and assets.”

Senator Adetukunbo Abiru (APC Lagos East) referred to the bill as “long over due” and advised MOFI to prioritize the creation of a comprehensive database of all federal government investments both within and outside the nation.

Senator Abudl Ningi (PDP Bauchi Central) called the legislation a “landmark legislation,” noting that since “no modification was made on the bill for 66 years,” the move to re-enact and repeal the old act was “apt.”

Following the second reading, the President of the Senate, Godswill Akpabio, referred the bill to the Senate Committee on Finance for additional legislative input, with instructions to report back within four weeks.