MOFI Warns Against Abandoning Public Assets, Says Nigeria Risks Wasting Billions
The Managing Director and Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Dr Armstrong Ume Takang, has warned that Nigeria could lose billions of naira invested in public infrastructure if government fails to properly manage and maintain the assets after commissioning.
Takang raised the concern on Wednesday in Abuja during the launch of the Renewable Asset Management Company (RAMCO), a joint initiative of the Rural Electrification Agency (REA), MOFI and the Infrastructure Corporation of Nigeria (InfraCorp).
RAMCO was established to provide a professional framework for managing, optimising and sustaining renewable energy assets, while creating opportunities to attract long-term private investment into the sector.
Takang said Nigeria had accumulated a huge portfolio of public assets through various government programmes and infrastructure investments, but lamented that inadequate maintenance had often rendered some of the facilities unproductive.
He warned against the practice of commissioning projects and subsequently abandoning them, saying government should maximise existing infrastructure before committing additional resources to new projects.
“We have a plethora of assets scattered around the country, many of them deployed through government programmes and large infrastructure investments. The question is: are those assets delivering the value for which they were established?” he asked.
The MOFI chief said the problem was particularly noticeable in renewable energy projects installed in educational institutions and teaching hospitals.
He disclosed that some of the facilities had become unusable because of relatively minor faults, including damaged solar panels and batteries, despite the huge sums initially invested in them.
According to him, the situation had forced some government agencies to seek fresh funding to repair or rebuild infrastructure that had already been financed and deployed.
“This is not something that is being exaggerated. It is a reality,” Takang said.
He explained that the challenge informed the partnership between MOFI and REA to establish a more sustainable framework for managing renewable energy infrastructure.
MOFI Identifies N25trn in Assets
Takang said MOFI’s approach to public asset management was based on three key priorities: identifying and valuing government assets, professionalising their management and mobilising capital for productive investments.
He described the identification and valuation of public assets as a critical first step, noting that while Nigerians often focus on the country’s debt, there had historically been insufficient attention to the value and performance of government-owned assets.
“Until we are able to establish what we own, we will not be in a position to optimise those assets and make the best use of them,” he said.
Takang disclosed that MOFI’s ongoing asset identification and verification exercise had so far identified assets valued at approximately N25 trillion.
He said the objective was to ensure that the assets are properly managed, generate appropriate revenues and continue to provide the economic and social benefits for which they were established.
He added that revenue from public assets could, where appropriate, contribute to debt servicing as well as the maintenance and sustainability of the assets.
On government-owned and government-linked companies, Takang stressed the importance of sound corporate governance, clear performance targets and competent boards and management teams.
RAMCO to Unlock Private Capital
According to him, RAMCO fits into MOFI’s broader asset management strategy by providing a platform for identifying renewable energy assets, improving their management and leveraging them to attract additional capital.
He said the initiative would reduce pressure on public finances by ensuring that existing infrastructure is fully utilised before government seeks funding for expansion or new projects.
“We must ensure that before we go back to government to ask for money to expand them or build new ones, we must make the most use of what we already have,” Takang said.
He also maintained that properly structured renewable energy assets could attract greater private-sector participation.
Takang explained that companies involved in the initiative could leverage their assets and balance sheets to mobilise private capital for the expansion of renewable energy infrastructure.
MOFI Boss Calls for New Power Supply Model
The MOFI chief further called for a rethink of Nigeria’s electricity supply model, arguing that the country’s power demand is far beyond what the national grid can currently provide.
He said the disparity made decentralised and distributed energy solutions essential, particularly renewable systems capable of supplying electricity directly to communities and public institutions.
Takang described RAMCO as more than a new institution, saying it represents a shift towards a more sustainable model of delivering electricity.
“It is about understanding that we are evolving a new model for delivering power to our communities,” he said.
He expressed confidence that effective governance, professional management and accountability would enable RAMCO to improve the utilisation of renewable energy investments and ensure that the assets continue to deliver value.
The launch is part of broader efforts by the Federal Government to strengthen the sustainability of renewable energy infrastructure and attract long-term private capital into the sector.
REA described RAMCO as a specialised platform for the professional management, optimisation and long-term sustainability of renewable energy assets across the country.
