MOFI and NGX Collaborate to Achieve N100 Trillion AUM Growth in a Decade

The Ministry of Finance Incorporated (MOFI) of Nigeria has announced a strategic collaboration with the Nigerian Exchange Ltd. (NGX) to substantially increase their Assets Under Management (AUM) from N18 trillion to N100 trillion over the course of the next decade. Dr. Armstrong Takang, the CEO of MOFI, revealed this development during the Closing Gong Ceremony held at the NGX trading floor in Lagos. Dr. Takang emphasized that the Federal Government recognizes the pivotal role that the capital market, under the leadership of NGX, plays in fostering economic expansion.

Details on The Partnership 

In terms of this partnership, Dr. Armstrong Takang, CEO of MOFI, expressed that its primary objective is to formulate a comprehensive plan for introducing select entities under its management into the capital market for trading purposes. 

He further highlighted that both MOFI and the leadership team of NGX will collaborate to establish a well-defined timeline and effective strategies to accomplish the outlined goals, which are in the best interest of both parties and the broader economy. In his words,

“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.”

Takang explained that due to the government's stake in various entities, MOFI's restructuring prompted a re-evaluation of corporate assets, which resulted in some assets having a cumulative net value of N18 trillion. 

He highlighted that the collective aim set for the organization is to escalate the AUM from N18 trillion to N100 trillion within the coming decade. Additionally, he emphasized that there are underperforming assets that could be enhanced through proper structures, strategic capital deployment, effective management, and governance, thereby boosting their value.

Takang underscored that this growth would stem from optimizing existing assets and infusing supplementary capital. He pointed out that several government-owned assets, including infrastructure, substantial portions of oil and gas assets, and real estate properties, remain unaccounted for. Furthermore, he noted that untapped assets span the realms of concessions, finances, and intangibles, especially in the technological sector.

Takang expressed confidence that a systematic enumeration, valuation, profiling, and collaboration with transactional advisors would bring them closer to their target.

He also emphasized the regulatory role of NGX, which bolsters the government's assurance to shareholders about asset security. With an independent entity focused on safeguarding assets, the government can confidently communicate the security of its shareholders' investments.

CEO of NGX, Mr. Temi Popoola, commended MOFI's strategic involvement and unwavering support for the market. Popoola highlighted that many of these companies require capital, making the capital market an apt avenue to meet such financial needs. He also emphasized how the partnership with MOFI would aid the capital market's expansion and the development of new products, leveraging assets like digital assets and real estate portfolios.