Nigeria Audits N38.3 Trillion in Public Assets to Combat Waste and Improve Transparency

MOFI Uncovers Massive Valuation Gap in Government Holdings

In a sweeping reform initiative, Nigeria’s Ministry of Finance Incorporated (MOFI) has revealed that the Federal Government’s N38.3 trillion investment portfolio is undergoing comprehensive audit and restructuring. The move aims to address decades of mismanagement and establish robust corporate governance frameworks across public enterprises.

Dr. Armstrong Takang, CEO of MOFI, disclosed these developments during the Nigerian Communications Commission’s (NCC) unveiling of 2025 Corporate Governance Guidelines in Lagos. The announcement sheds light on what experts describe as Nigeria’s long-standing “asset blindness” – where the government maintained poor records of its own holdings.

The Shocking Valuation Discovery

“When we began this process, official records showed only N1.5 trillion in government assets,” Takang revealed. “But after evaluating just 20 entities, we identified N38.3 trillion in net asset value.” This staggering discrepancy highlights systemic failures in asset tracking that allowed billions in public investments to go unaccounted for.

The audit has exposed numerous enterprises operating far below capacity, with some not paying dividends for decades. Takang cited tragic examples like Nigerian Airways, Ajaokuta Steel, and Delta Steel – once-promising national assets that deteriorated into “ghost towns” despite massive initial investments.

“We spent billions of dollars to establish these companies. Yet today, some of them are nothing more than ghost towns. No value is coming back to the Nigerian people,” Takang lamented.

Corporate Governance Failures at the Core

The MOFI chief identified weak corporate governance as the root cause of these systemic failures. Many state-owned enterprises operated without proper accountability mechanisms, financial reporting, or performance benchmarks.

“Managers behaved as if they weren’t answerable to anyone,” Takang explained. “No audited financials, no transparency, no consequences for failure – this culture must change if we want these assets to benefit Nigerians.”

Building a New Framework for Accountability

To address these issues, MOFI is implementing several key reforms:

• Comprehensive Asset Registry: A centralized database tracking all federal assets including location, value, management, and performance metrics
• Corporate Governance Scorecard: Evaluation system measuring transparency, dividend payments, job creation, and community impact
• Independent Oversight: Assessment teams comprising experts from the Financial Reporting Council, Institute of Directors, and Society for Corporate Governance

“This isn’t just record-keeping – it’s about transparency. Every Nigerian deserves to know what the government owns and what returns we’re getting,” Takang emphasized.

Strategic Vision for Public Assets

The reforms signal a paradigm shift in how Nigeria manages state-owned enterprises. Rather than selling distressed assets, MOFI aims to rehabilitate them to profitability before considering divestment.

“Public assets should be sold after they succeed, not because they’ve failed,” Takang noted, drawing a clear distinction between strategic privatization and fire sales of underperforming entities.

Marching Toward a Trillion-Dollar Economy

The initiative aligns with Nigeria’s broader economic ambitions. “If we want to become a trillion-dollar economy, we can’t continue acting like we’re in the third division,” Takang stated. “We must operate with premier league discipline, structure, and accountability.”

The audit follows March directives from Finance Minister of State Dr. Doris Uzoka-Anite, who charged MOFI with developing transparent valuation and remuneration frameworks for all federal assets.

What This Means for Nigeria’s Future

Experts view these reforms as critical for:

• Restoring public trust in government investments
• Attracting private sector participation
• Maximizing returns on national assets
• Creating employment opportunities

As Nigeria works to unlock the true value of its N38.3 trillion portfolio, the world will be watching whether this ambitious governance overhaul can transform decades of waste into sustainable national prosperity.

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