It’s fallacy to claim only private sector can drive business – MOFI

The Managing Director and CEO of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, has dismissed the notion that the government should not be involved in the business of driving economic growth in Nigeria.

He described this view as a fallacy, asserting that governments at all levels play a critical role in the development of any nation.

He made these remarks on Wednesday in Abuja during the official launch of the MOFI Excellence Awards and the inauguration of its panelists.

Takang highlighted that countries like China have proven that government intervention in the economy, alongside private sector participation, can lead to success. He emphasized that this is the kind of capitalism Nigeria should aim for.

He cited Singapore Airlines, which has been owned by a government agency similar to MOFI, as an example of a successful state-owned enterprise. The airline has remained a leader in global aviation for decades, showcasing the potential of government involvement in business.

“The government has a pivotal role to play because of its sovereign status and its ability to access resources that the private sector can’t,” Takang explained. “There are certain amounts of capital the government can mobilize where private companies simply don’t have access.”

He continued, “It’s a fallacy to suggest that only the private sector can grow businesses. At MOFI, we believe the government can leverage its sovereign status to drive business and create opportunities for the private sector, especially where they lack the necessary capital. The private sector still needs the government. And we believe state-owned enterprises have a significant role to play in the economy.”

Takang also discussed the MOFI Excellence Awards, which aim to foster a culture of governance, excellence, and performance in state-owned enterprises. The awards will serve as a tool to evaluate corporate governance, track contributions to GDP, job creation, and other economic sectors, and encourage these enterprises to prioritize impact and accountability.

“We want state-owned enterprises to perform at their best, and that’s why we introduced the MOFI Excellence Awards,” Takang said, adding. “The goal is to provide a framework for assessing these organizations and ensuring they contribute positively to the economy.”

He noted that some of MOFI’s portfolio businesses have already begun prioritizing dividend payments, signaling a shift toward better performance and accountability.

“By institutionalizing these awards, we are creating a culture of excellence in corporate governance,” he added.

Also speaking while inaugurating the panelist for the award, the minister of finance and cordinating minister of the econony, Wale Edun said the awards became necassary to champion and promote productivity among goverment owned enterprises

He charged them to remain diligent and ensure that recongnition is based on merit

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