The House of Representatives has approved the Finance Ministry Amendment Bill for a second reading. This new Bill is designed to improve the ownership, management, and accountability of federal government assets across the country.
The proposed legislation will repeal the Ministry of Finance Incorporated Act of 1959 and replace it with the Ministry of Finance Act 2024. During the plenary session, Ademorin Kuye explained that the Ministry of Finance Incorporated (MoFI) was originally established in 1959 to oversee federal government assets. However, due to outdated laws and limited powers, MoFI has struggled to fulfill its role, resulting in widespread misuse, neglect, and mismanagement of these assets.
Kuye pointed out that the old law only had six sections, which are no longer sufficient for modern governance. The new Bill introduces 49 sections to provide a more comprehensive framework for managing and utilizing federal assets effectively.
The Bill aims to reinvigorate MoFI by creating a robust organisational structure and corporate governance model. It will grant the agency stronger powers to oversee over N300 trillion worth of federal government assets, ensuring these resources are used efficiently and not left idle or misappropriated.
Additionally, the Bill seeks to empower MoFI to stimulate economic growth by optimising the use of federal assets. The new framework will also ensure MoFI has the legal backing to operate effectively, with incentives for its board to achieve better results.
Once passed into law, this legislation will establish a truly national corporation capable of managing and accounting for federal government assets while promoting accountability and economic development.