Economy
Buhari Tasks MOFI Board to Grow Assets to N100trn
By Modupe Gbadeyanka
The newly inaugurated board of the Ministry of Finance Incorporated (MOFI) has been given the mandate to grow its Assets Under Management from the current value of N18 trillion to at least N100 trillion in the next 10 years.
A statement issued on Wednesday by Mr Femi Adesina, the Special Adviser to President Muhammadu Buhari on Media and Publicity, disclosed that the charge was given at the State House, Abuja, during the inauguration of the MOFI board shortly before the commencement of the Federal Executive Council (FEC) meeting today.
The President also tasked the new board to “be the clearinghouse for the management of federal government investments and assets in line with global best practices with a view to ensuring that these investments are delivering superior risk-adjusted returns to the government.”
He also called on the new MOFI to “work with other MDAs to create a consolidated national asset register with a view to converting these assets into cashflow-generating entities to support the government’s revenue drive and; partner with the government with a view to using government-owned investments and assets to support the government in delivering on its social and economic obligations to the citizenry.”
To this effect, he directed the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, to commence the process of amending the MOFI Act and other legislations to institutionalise this reform further and ensure that MOFI is restructured and repositioned to become a trusted custodian and manager of Federal Government investments and assets.
President Buhari said the event was significant as the restructured MOFI will help identify “what we own” and how to get the best out of them.
According to him, the MOFI Act of 1959, now Cap. 229, Laws of the Federation, 2004 “explicitly empowers MOFI to enter into commercial transactions of any description on behalf of the Federal Government of Nigeria in its own name. As a result, MOFI was used as a Special Purpose Vehicle across different sectors to invest in commercial entities over the last 64 years. To put this in context, MOFI was created even before Nigeria’s independence.”
Speaking further, the President said, “MOFI was not structured to be governed or resourced to deliver on the expected mandate. MOFI’s peers, on the other hand, that were deliberately set up with the institutional framework, governance structure, and execution capacity, have gone on to make major social and economic impacts in their respective nations. Many of these have become global brands for investing domestically and internationally.
“As part of the governance structure, there will be a Governing Council headed by me, a Board of Directors under the leadership of a former Minister of Finance and an Executive Management Team headed by Dr Armstrong Takang.”
President Buhari reminded members of the Governing Council as well as the Board of Directors that this administration expected much from them. Specifically, he tasked Ministers who are members to “create an enabling environment that will facilitate the creation of a National Asset Register that will be harnessed to strengthen our fiscal and economic realities and the optimization of our investments and assets that will be under the purview of MOFI.”
In her remarks, Mrs Ahmed thanked President Buhari for his support and approvals that have made the restructuring and repositioning of MOFI possible, assuring him that Council members and the Board will ensure that the new MOFI delivers on its mandates.
By Adedapo Adesanya
Four stocks weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.22 per cent on Tuesday, March 24, with Friesland Campina Wamco Nigeria Plc leading the pack after shedding N7.83 to trade at N108.73 per share compared with the previous day’s N116.00 per share.
Further, Food Concepts Plc lost 37 Kobo to close at N3.00 per unit versus Monday’s closing price of N3.37 per unit, Riggs Ventures Plc depreciated by 10 Kobo to 90 Kobo per share from N1.00 per share, and Industrial and General Insurance (IGI) Plc dipped by 4 Kobo to 53 Kobo per unit from 57 Kobo per unit.
Consequently, the market capitalisation of the NASD bourse went down by N5.40 billion to N2.477 trillion from the previous session’s N2.482 trillion, and the NASD Unlisted Security Index (NSI) fell by 9.08 points to 4,140.30 points from 4,149.38 points.
Business Post reports that despite the loss, the trading platform witnessed the rise in the share prices of four securities, led by Okitipupa Plc, which gained N13.50 to sell at N250.00 per share compared with the previous day’s N236.50 per share. Central Securities Clearing System (CSCS) Plc added N2.61 to close at N78.94 per unit versus N76.33 per unit, First Trust Mortgage Bank Plc appreciated by 19 Kobo to N2.08 per share from N1.89 per share, and Impresit Bakalori Plc improved by 18 Kobo to N2.01 per unit from N1.83 per unit.
Tuesday’s trading data showed that the value of transactions increased by 518.9 per cent to N45.6 million from N7.37 million, and the volume of trades increased by securities rose by 126.34 per cent to 933,125 units from 412,260 units, while the number of deals went down by 9.4 per cent to 29 deals from 32 deals.
CSCS Plc remained the most traded stock by value (year-to-date) with 39.1 million units worth N2.4 billion, trailed by Infrastructure Guarantee Credit Plc with 400 million units valued at N1.2 billion, and Okitipupa Plc with 6.4 million units traded for N1.2 billion.
Resourcery Plc maintained its position as the most traded stock by volume (year-to-date) with 1.1 billion units exchanged for N415.7 million, followed by Infrastructure Credit Plc with 400 million units sold for N1.2 billion, and Geo-Fluids Plc with 131.2 million units transacted for N505.8 million.
By Adedapo Adesanya
Pressure on the Naira against the Dollar eased on Tuesday, March 24, by 0.41 per cent or N5.75 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) to N1,382.63/$1 from the previous day’s N1,388.38/$1.
Also, the Nigerian currency gained N11.43 against the Pound Sterling in the official market during the session to sell for N1,848.86/£1 versus Monday’s closing rate of N1,860.29/£1, and improved its value against the Euro by N9.43 to settle at N1,599.98/€1 versus the preceding session’s price of N1,609.41/€1.
However, the Naira lost N17 against the Dollar at the GTBank forex desk to close at N1,388/$1, in contrast to the previous N1,371/$1, and closed flat against the US Dollar in the parallel market at N1,400/$1.
Analysts at Quest Merchant Bank said global factors are shaping investor sentiment, giving the local currency the needed strength to maintain stability in the currency market. The prolonged conflict in the Middle East has heightened risk aversion, reducing appetite for emerging-market assets.
The bank noted that de-escalation in geopolitical tensions, alongside Nigeria’s attractive yield environment, could help sustain offshore inflows and support the currency in the near term, though structural challenges remain.
As for the cryptocurrency market, profit-taking erased gains made by some tokens after it was reported that a one-month ceasefire in the Iran war could be announced soon as part of a wider deal, easing worries that gripped the markets.
Other terms of the deal reportedly include a dismantling of Iran’s existing nuclear capabilities and that country’s vow to “never seek” nuclear weapons.
The news was felt most immediately in the oil market, with Brent Crude dropping from $104 to below $100 in a few minutes.
Previously, US President Donald Trump announced a five-day pause on strikes against Iranian energy infrastructure.
Solana (SOL) depreciated by 1.4 per cent to $90.21, Ripple (XRP) slumped by 1.3 per cent to $1.40, Bitcoin dipped 0.6 per cent to $70,235.96, Ethereum (ETH) declined by 0.4 per cent to $2,143.38, and Binance Coin (BNB) dropped 0.3 per cent to sell for $636.19.
On the flip side, Cardano (ADA) rose 1.4 per cent to $0.2652, TRON (TRX) added 0.7 per cent to close at $0.3077, and Dogecoin (DOGE) appreciated by 0.3 per cent to $0.095, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Oil prices were mixed on Tuesday after reports that the United States had sent Iran a 15-point plan to end the war in the Middle East.
Brent futures went down by $0.83 or 0.9 per cent to $99.11 a barrel, while the US West Texas Intermediate climbed $4.22 or 4.79 per cent to $92.35 per barrel.
President Donald Trump said on Tuesday that the US and Iran were “in negotiations right now” and suggested Tehran was eager to make a peace deal, even as the Islamic Republic denied it’s in direct talks with America.
President Trump, speaking in the Oval Office, said he decided to back off from his recent threat to order strikes on Iranian energy infrastructure
According to reports, the plan includes a one-month ceasefire to be announced, according to a mechanism that US Middle East envoys Steve Witkoff and Jared Kushner are working on.
The Strait of Hormuz was handling about 20 per cent of global seaborne oil supplies until the war broke out, before Iran virtually stopped flows via the critical waterway. With around a fifth of the world’s daily oil supply cut off by the Middle East war, prices are still more than 40 per cent higher than they were when the conflict erupted in late February.
The United Arab Emirates (UAE), which has seen its liquified natural gas (LNG) and most oil supply choked at the vital chokepoint, said Iran’s weaponisation of the energy and trade flows amounts to economic terrorism against every nation in the world.
Since the US-Israel strikes on Iran began on February 28, the daily traffic of over 100 vessels, including tankers, through the Strait of Hormuz, has slowed to a trickle of a handful of passages per week, all cargoes apparently approved for transit by Iran.
Iranian state media said that Iran would permit safe transit through the strait, except for ships associated with its “enemies.”
Amid the messaging clash between the US and Iran on negotiations, multiple outlets have reported that regional leaders are engaged in behind-the-scenes diplomatic efforts to help broker an end to the war.
The American Petroleum Institute (API) estimated that crude oil inventories in the US rose by 2.3 million barrels in the week ending March 20. Official data from the Energy Information Administration (EIA) will be released later on Wednesday.
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