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By Chinenye Anuforo
The Chief Executive Officer, Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, has disclosed that good corporate governance was the foundation for Nigeria’s economic growth and crucial to achieve its vision of becoming Africa’s leading digital economy.
“It will help unlock over $3 billion in infrastructure investment by 2026 and drive affordable connectivity for all Nigerians”, he said.
Speaking recently at the formal launch of Nigerian Communications Commission (NCC) new guidelines on corporate governance for the telecommunications industry, he highlighted the critical role of transparency, accountability and ethical leadership stating that absence of these principles has historically hindered national development.
Takang pointed to the historical failures of government-owned enterprises as a warning.
He cited the collapse of entities like NITEL, where an estimated N500 billion in value was lost due to weak board structures, excessive political interference, and a severe lack of transparency.
NITEL’s downfall resulted in the loss of over 12,000 jobs, N81 billion in stranded assets and a significant delay in Nigeria’s digital transformation.
“NITEL’s collapse was not inevitable, it was the direct result of governance failures that could have been prevented”, MOFI CEO stated.
Recognising these past mistakes, MOFI, under Dr. Takang’s leadership, underwent a major restructuring in 2023, making corporate governance its top priority.
Key initiatives included Asset Transparency which he said MOFI has revalued government assets. By the end of 2023, they identified 20 key assets with a combined net asset value of N38.3 trillion, a significant increase from an initial N1.5 trillion. This process aims to reveal the true extent of Nigeria’s public wealth.
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He also said MOFI is working to transform government-linked companies into professionally run, performance-driven entities. They now evaluate these companies based on growth in share value, dividend payments, and overall market impact. “A Corporate Governance Scorecard, managed by an independent panel, has been launched to assess these entities.
He added MOFI plans to host the MOFI Excellence Awards to recognize top-performing entities, encouraging best practices and rewarding transparency and value creation.
Dr. Takang highlighted that good governance is good business. Companies with strong governance frameworks consistently outperform their peers. He gave an instance of MTN Nigeria, which saw bond rates decrease by 2.4% and unlocked N250 billion in infrastructure financing after improving its governance, demonstrating the tangible benefits. “Similarly, Airtel Africa’s board reforms led to a 14% stock price growth in 2023 and a 43% reduction in NCC compliance fines”, he argued.
Takang applauded the NCC for prioritizing governance reforms. He urged all stakeholders to embrace these changes, emphasizing that strong governance is crucial for Nigeria to achieve its vision of becoming Africa’s leading digital economy.
“Good governance unlocks capital, preserves legacy, and ensures continuity”.
He urged businesses to adopt these principles to ensure their long-term survival and contribute to building a nation that commands global respect.
Nigeria’s telecom sector is a major economic driver. As of late July, two leading telecom firms alone accounted for over 21% of the Nigerian Stock Exchange’s nearly N19 trillion market capitalization. These companies are also among the nation’s top 15 taxpayers, supporting thousands of jobs and providing essential 24/7 infrastructure that powers businesses and livelihoods across the country.
However, despite this significant contribution, the sector faces challenges, including volatile foreign direct investment (FDI). For instance, telecom FDI saw a sharp 87% decline in Q3 2024, dropping to $14.74 million from $113.4 million in Q2. This dramatic drop is directly linked to investor concerns about governance.
