The Ministry of Finance Incorporated is turning its attention towards the capital market as it endeavors to secure funds in order to achieve its goal of amassing N100 trillion in assets under management within a decade.
This revelation emerged on Monday during the closing-gong event held at the Nigerian Exchange Limited in Lagos, which was dedicated to honoring MOFI.
Addressing the attendees at the NGX, Dr. Armstrong Takang, the Managing Director of MOFI, emphasized the significance of sourcing funding for investments and government entities, underscoring the crucial role played by the capital market in this context.
“We need to use the capital market to raise funds. It is not everything that we have to go and borrow. The capital market is there for us 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?
In response, the Chief Executive Officer of the NGX, Temi Popoola, expressed the willingness of the exchange and other stakeholders to achieve the goal of MOFI.
He said, “One of the things that we hope that you are leaving with today is that the market is willing to support you. We hope that it will be a collaborative effort. The market is at an exciting time. We have seen our local investors really step up to the plate, and with a lot of initiative that has been taken, we are strengthened to support initiatives like yours.”
In his comments, the president of the Chartered Institute of Stockbrokers, Oluwole Adeosun, said, “I have hope that Nigeria’s assets, which have been maintained in a passive register, are being actively managed. I have a dream of the fact that one day, entities that Nigeria has invested funds in for the past 62 years will start yielding value, creating value, and we will see those entities being transformed into securities that will be traded on this floor of the NGX and even on other frontiers.
“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 four times 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 head of the Association of Securities Dealing Houses of Nigeria, conveyed his trust in the management of MOFi. He expressed optimism that the growing call for transparency within the capital market would instill a sense of discipline among government entities.
He said, “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 N100 trillion 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 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.”
On the regulatory side, the Chief Executive Officer of NGX Regulation Limited, Tinu Awe, assured MOFI that its assets would be safe as the exchange thrives on transparency.
She said, “We are pleased to have NGX enter into this partnership with MOFI. This is a regulated market, and I know that all the gentlemen of the city on the floor will agree with me. Whatever MOFI does in this market, their assets are safe, they will be well looked after, and the decision to come into this market will not be regretted with respect to transparency, integrity, and following up on any issue that MOFI may have.”
