The Federal Government of Nigeria has introduced a comprehensive mechanism to assess, monitor, and enhance the performance of State-Owned Enterprises (SOEs), aiming to improve transparency, accountability, and efficiency in the management of public assets.
This announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during the inauguration of the Corporate Governance Scorecard, organized by the Ministry of Finance Incorporated (MOFI) in collaboration with the World Bank. The event, held in Abuja, was themed “Ensuring Value Creation in State-Owned Enterprises Through Better Corporate Governance.”
Mr. Edun emphasized that SOEs are pivotal to Nigeria’s economic infrastructure, operating across critical sectors such as energy, infrastructure, telecommunications, and financial services. However, many of these enterprises have been hindered by inefficiencies, poor financial management, and weak governance structures.
“The question is not whether SOEs should continue to exist, but how they can be repositioned to better fulfill their mandates,” Edun said. “In this context, corporate governance assumes an indispensable role.”
He highlighted the Federal Government’s commitment to overhauling SOE operations by implementing robust governance frameworks designed to safeguard public resources and drive operational efficiency.
MOFI Leads the Charge in Public Asset Optimization
Under the leadership of MOFI, the government is rolling out the Corporate Governance Scorecard as a tool to evaluate the performance of state-owned entities, identify areas for reform, and boost productivity.
MOFI’s role as an active asset manager for the Federal Government includes the professionalization and efficient administration of SOEs.
“With this initiative, the government is instituting a reliable mechanism to monitor and enhance the performance of its state-owned enterprises,” Edun explained.
Power Sector Reform Highlights Urgency of Governance Transformation
Also speaking at the event, Minister of Power, Mr. Adebayo Adelabu, underlined the critical role SOEs play in delivering public services and driving national development.
Adelabu pointed out that technological changes, economic shifts, and rising public expectations demand a transformation in how SOEs are governed.
“For us in the power sector, this imperative is neither abstract nor optional,” he said. “It is urgent, necessary, and already underway.”
He cited the recent unbundling of the Transmission Company of Nigeria into two distinct entities as a structural reform aimed at enhancing transparency and performance through better governance.
Building Investor Confidence and Public Trust
Adelabu emphasized that sound corporate governance is essential not only for operational excellence but also for attracting investors, ensuring regulatory compliance, and protecting the public interest.
“Each entity must be governed with integrity, independence, and accountability,” he said, adding that the launch of the scorecard is a key step toward a culture of performance and transparency in Nigeria’s public enterprise ecosystem.
MOFI Board Commits to Ethical Leadership
Dr. Shamsuddeen Usman, Chairman of the MOFI Board, confirmed that all board members and executives have committed to a corporate governance code of ethics and professionalism.
“We’ve implemented strict measures to ensure transparency and boldness in our governance approach,” Usman noted. “This commitment lays the foundation for strong corporate governance across SOEs.”
He added that assessments under the scorecard framework will be independently conducted to ensure objectivity and credibility.
World Bank Endorses Nigeria’s SOE Transformation Agenda
Mr. Ndiame Diop, World Bank Country Director for Nigeria, lauded the initiative and underscored the strategic role SOEs play in economic development and high-risk private sector investments.
“Nigeria’s SOEs operate across key sectors such as power, agriculture, and financial services, making them vital to national growth and revenue generation,” Diop said.
He added that the country’s large portfolio of strategic public assets, if properly managed, could significantly accelerate its development goals.
