FG Eyes Capital Market To Achieve N100trn Assets Goal
The Ministry of Finance Incorporated, the investment vehicle of the Federal Government, has set its eyes on the capital market to raise funds as it seeks to meet its targets of having N100tn assets under management in 10 years.
This was revealed on Monday at the closing-gong ceremony held in honour of MOFI at the Nigerian Exchange Limited in Lagos.
Speaking at the NGX, the Managing Director of MOFI, Dr Armstrong Takang, said, “We are expected to source funding for investment and for government entities which is where the capital market is important.
“We need to use the capital market to raise funds. It is not everything that we have to go and borrow for. The capital market is there for us to be able 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?
The Chief Executive Officer of the NGX, Temi Popoola, in response, 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 collaborative support. The market is at a very exciting time. We have seen our local investors really step up to the plate and with a lot of initiative that has been done, 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 is 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 this NGX and even on other frontiers.
“When speaking you mentioned a target of N100tn 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 times four 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.”
The chairman of the Association of Securities Dealing Houses of Nigeria, Sam Onukwue, expressed confidence in the management of MOFi and hopes the demand for transparency in the capital market will bring discipline into 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 N100tn 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 them coming 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 will 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.”
