The Nigerian Senate has passed for a second reading a bill to repeal the Ministry of Finance Incorporated (MOFI) Act of 1959 and re-enact it under the proposed Ministry of Finance Incorporated 2025 Act.
The development followed the presentation of the bill’s general principles at Tuesday’s plenary session. Sponsored by Sen. Mohammed Sani (APC-Niger), the legislation is aimed at creating a modern, transparent, and professionally driven framework for MOFI.
Speaking during the lead debate, Sani said the bill “sought to repeal the MOFI Act of 1959 and re-enact a modern, robust legal framework that reflects current economic realities of Nigeria and global best practices.”
He explained that MOFI was established 65 years ago as the federal government’s investment holding company but noted that under the current law, it “operates merely as a passive custodian of government assets,” lacking the necessary authority, government structure, and institutional capacity.
“The result is that the federation has continued to lose significant revenue due to ownership structures and weak oversight mechanisms,” Sani said.
He added: “The bill seeks to transform MOFI from a dormant custodian into a strategic, professional and transparent institution capable of driving national wealth creation. The bill seeks to replace the 1959 legislation with a modern statute aligned with contemporary investment governance standards and global best practices. 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.”
Sani further highlighted that the bill would empower MOFI to actively manage government assets, invest in domestic and international markets, enter public-private partnerships, and utilise innovative financial instruments such as securitisation, bond issuance, and special purpose vehicles.
“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,” he added.
The senator said the legislation was designed to channel investments into high-impact sectors including technology, agriculture, manufacturing, infrastructure, and other growth-driven areas, reducing reliance on oil revenues and generating new economic opportunities.
“MOFI Act of 1959 is clearly no longer fit for purpose. It suffers from a narrow and outdated mandate, weak and unclear governance structure, restrictive investment authority, limited transparency and accountability,” Sani said.
He stressed that these weaknesses undermined Nigeria’s ability to generate value from public assets while preventing MOFI from contributing meaningfully to economic growth.
“In Singapore, Temasek Holdings, valued at more than 382 billion dollars, operates with an independent board, full public disclosures, and diversified investment portfolios. In Norway, the Sovereign Wealth Fund manages more than 1.4 trillion dollars and is renowned for transparency, ethical guidelines, and rigorous parliamentary oversight. This bill draws inspiration from such global models, adapting the principles in governance, transparency, and performance,” Sani said.
He concluded that the reforms would help Nigeria transition from volatile revenue sources to a diversified, asset-driven economy. “The Ministry of Finance Incorporated MOFI Bill 2025 represents a bold step towards modernising Nigeria’s public investment architecture. By reigniting this 65-year-old law, we are strengthening governance, enhancing transparency, maximising national assets and driving sustainable wealth creation for generations to come.”
Sani urged lawmakers to support the second reading of the bill.
Supporting the legislation, Sen. Abdulahi Yahaya (APC-Kebbi) described the bill as germane and suggested that the Senate consider merging the MOFI Act with the Sovereign Wealth Fund Act to create a single operational law overseeing all federal government investments.
Sen. Adetukunbo Abiru (APC-Lagos) described the bill as long overdue and advised MOFI to develop a comprehensive database of all federal government investments nationally and internationally.
Sen. Abdul Ningi (PDP-Bauchi) called the bill “landmark legislation,” noting that the MOFI Act had not been amended in 65 years, making its repeal and re-enactment “apt.”
Following the second reading, Senate President Godswill Akpabio referred the bill to the Senate Committee on Finance for further legislative input, with a report expected in four weeks.
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