Armstrong Ume Takang
“We need to find local solutions.”

In light of the crisis, the government agency dedicated to managing the State's assets is working with both public and private companies to design the economic architecture of the future.

AM: What is MOFI?

Armstrong Ume Takang: It stands for Ministry of Finance Incorporated. MOFI is the federal government's asset and investment manager. It was established by law in 1959, but only became operational in February 2023. MOFI now has a governance structure and, at the highest level, a Board of Directors chaired by the Head of State, with the Vice-Chairman acting as Deputy Head. Our activities focus on two key areas. The first is to determine what the federal government owns, and to do this we have created a register of national assets, be they corporate, real estate, concessions or other assets. Secondly, we are working with public companies, which we are supporting so that they provide higher risk-adjusted returns, create more jobs and boost economic growth.

Do you have any examples of this type of company?

The Nigerian National Petroleum Corporation (NNPC), the Bank of Industry, the Development Bank of Nigeria, Family Homes Funds, Galaxy Backbone, NigComSat... We also own shares in the Nigerian Mortgage Refinance Company (NMRC).

Do you also hold shares in private companies?

Yes, and we also have 100%-owned public companies, which are considered to be commercial in nature. We help them to improve their performance by introducing a high level of governance and finding ways of giving them more capital. The third aspect of our role is to mobilise investment in strategic sectors of the economy, such as agriculture, manufacturing, infrastructure and health. We work with a range of partners, particularly the private sector and international companies, to mobilise capital.

If one of the companies you choose is not prepared to let you take a stake in its capital, what happens?

We leave them alone! And because we're a government agency designed to support the economy, not all companies are of interest to us.

What is your level of ownership in companies?

It can range from 11% to 100%. Our stake varies from company to company.

What is the volume of assets held by the Federal Republic?

The asset valuation exercise is ongoing. Those that we have identified so far are worth at least 20,000 billion naira.

Do you also have a fund-raising function?

We identify a project and then approach different investors to present the opportunity.

What are the advantages for people ready to invest?

For many people, it's an opportunity to get a return on their money. For others, it's an opportunity to contribute to development, particularly for financial institutions. Some are interested in ESG (environment, social and governance), employment and development, and have already invested in our portfolio companies.

You’re also looking to create job opportunities.

The government has a plan to create millions of jobs, but for that to happen, the economy needs to return to growth. We finance agri-food businesses in particular, which are expanding and creating new jobs. We also support the manufacturing sector by providing the money needed to increase production, creating more jobs. We also provide support for housing and, through a mortgage programme, increase demand in the sector. Through some of our portfolio companies, we also finance technology start-ups. This helps them to launch new entities, which will recruit.

What is the minimum size of the companies you choose to work with?

The companies in which we invest directly are generally medium-sized. But our portfolio companies can invest in smaller companies.

Are you confident about the future?

Yes, because our economy is growing. We need more infrastructure to boost production and support the population. And this need offers investment opportunities. Moreover, as we have a very young population, we have a large workforce and will have no trouble finding workers to support economic development. The country currently offers numerous fiscal incentives for businesses and investments. We believe that this is going to provide tremendous opportunities for both domestic investors and foreign investors who are interested in Nigeria. So we’re very confident, even though these are challenging times, where we have higher than expected inflation, some challenges with foreign exchange and liquidity, high unemployment, but we believe that the reforms being put in place are opening up new opportunities.

It's a difficult time for the population. And also for some investors, who are leaving the country because of the insecurity and the devaluation of the naira...

You’re perfectly right. It’s a challenging time in our history. The macroeconomic environment is not exactly where we would like it to be, which is creating challenges for businesses and the population because of the rising cost of living whether it be transport costs, electricity, or food. And we’ve seen some companies that have exited because of these challenges. However, we are also aware that this provides opportunities for us to reset our economic architecture. It is for us to be resolute in the reforms that have been undertaken, to be innovative and creative in finding local solutions. We need to start looking inwards. We can't import everything because clearly the liquidity challenge and the foreign exchange market makes it difficult for us to import. So we need to find local solutions to reduce the pressure on our currencies. I’m confident that these tough times won't last forever. We’re going to come out stronger and better and wiser. It will be for the good of our people and of the country.

How long do you think it will take for the situation to really improve?

It is difficult to set a specific timeline but what I will say is this: different sectors will come out at different times, depending on their fundamentals. But one thing is clear: we must focus on increasing productivity across all sectors of our economy. Putting in place mechanisms, programmes, incentives and investment that lead to increasing food production is key. When you increase production prices come down. It’s the law of supply and demand.