Lagos, Aug. 5, 2023 – The Ministry of Finance Incorporated (MOFi), an investment vehicle of the Federal Government, pans to raise funds from the capital market to meet its N100 trillion assets base within 10 years.
Dr Armstrong Takang, its Managing Director, said at the closing-gong ceremony held in honour of MOFi at the Nigerian Exchange Limited in Lagos on Monday.
“We are expected to source funding for investment and for government entities which is where the capital market is important.
“We need to use the capital market to raise funds. It is not everything that we have to go and borrow for.
“The capital market is there for us to be able to tap into. Other countries have done it. A lot of infrastructure projects in the US are funded by the capital market, why can’t we do the same thing?
Responding, Temi Popoola, the Chief Executive of the Nigerian Exchange (NGX), said the Exchange would be willing to assist MOFi to achieve its objective.
“When speaking, you mentioned a target of N100 trillion as assets under management. I assure you that those things are still book value. By the time you bring them to our floor, you will see them transformed into a minimum of times four their value.
“By then, you will be able to see the value-creation power that lies in the exchange. The CIS and our counterparts in this capital market space are prepared to make this dream a reality.”
Sam Onukwue, the Chairman of the Association of Securities Dealing Houses of Nigeria (ASDHN), expressed confidence in MOFi management and expressed optimism that the transparency in the capital market transactions would rob-off on government entities.
“One of the things we expect to happen is not just the exponential growth in asset value that they are looking to rebuild because they have a mandate to move the current assets to N100tn in 10 years, but to bring discipline in those institutions by coming to the market.
“We have his commitment that they are ready to bring those institutions to the market.
“We are concerned about the way privatization has gone in recent times where the core investor approach has not really helped the market.
“But with them coming into the fray and the assurances we have received from them; we know them coming this market will witness an era where government securities will be traded here.
“We can assure you too that the market has the absorbing capability too.” (GBN)
