By George Ozalla
The House of Representatives has taken a poignant step towards reforming Nigeria’s financial legal framework by calling for a review of the Ministry of Finance Incorporated (MOFI) Act. The House of Representatives Committees on Finance and Public Assets during a public hearing on Tuesday to discuss a bill targeted at repealing the existing MOFI Act and enacting a new one that conforms with global financial management best practices and regulatory expectations.
The Speaker of the House of Representatives, Dr Tajudeen Abbas, stressed the importance of updating the nation’s financial statutes to align with present economic realities. Abbas further observed that MOFI, set up in 1959 and last reviewed in 2004, has consistently failed to meet its statutory and ethical responsibilities. He emphasized the need to overhaul the agency to ensure transparency and accountability in the management of public investments. “This public hearing provides a platform for professionals, stakeholders, and the public to contribute meaningfully to a legislative process aimed at repealing outdated laws and crafting a modern legal framework that reflects today’s economic realities,” Abbas said.
The Chairman of the Committee on Finance, Hon. James Faleke, spotlighted the agency’s mandate to manage the Federal Government’s investments, assets, and financial commitments. Faleke disagreed with practice of unofficial transfer of public assets to individuals through executive directives without due legal process, lamenting that such practices violate the agency’s core mandate and showcases institutional weaknesses. “The proposed legal amendments would align MOFI’s operations with contemporary economic challenges and provide the necessary statutory backing to revamp the agency in line with international standards,” he stated.
The Chairman of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, who attended the public hearing with his team, emphasized the importance of a robust regulatory framework in ensuring the integrity of Nigeria’s financial system. He noted that the proposed repeal and re-enactment of the MOFI Act would provide an opportunity to strengthen the agency’s governance structure and enhance its ability to manage public investments effectively. “We believe that this bill, if passed, would significantly improve the transparency and accountability of MOFI’s operations, which would in turn boost investor confidence and contribute to the overall stability of the financial system,” Agama stated.
The expected repeal and re-enactment of the MOFI Act would have a significant impact on Nigeria’s financial system, providing an opportunity to strengthen the agency’s governance structure, enhance transparency and accountability, and align its operations with international standards. This would boost investor’s confidence, contribute to the overall stability of the financial system, and support Nigeria’s long-term fiscal health. The proposed legal amendments would ensure that MOFI’s operations are guided by a modern and robust legal framework that reflects current economic realities, enabling the agency to effectively manage public investments, maximize revenue generation, and support the nation’s economic growth and development.
