FG implements mechanism to enhance State-Owned Enterprises’ SOEs performance

The Federal Government of Nigeria has inaugurated a new mechanism aimed at assessing, monitoring, and improving the performance of State-Owned Enterprises (SOEs) in the country.

This move was announced by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, at the launch of the Corporate Governance Scorecard, organized by the Ministry of Finance Incorporated (MOFI) in partnership with the World Bank in Abuja on Monday.

The theme of the event, “Ensuring Value Creation in State-Owned Enterprises Through Better Corporate Governance,” highlighted the importance of good governance practices to enhance SOEs’ contribution to Nigeria’s economic growth.

Edun emphasized that SOEs are vital to key sectors such as energy, infrastructure, telecommunications, and financial services, and that improving their governance was crucial for driving economic development, job creation, and industrial growth.

Edun explained that while SOEs had often faced inefficiencies, poor financial management, and governance issues, the government’s focus was on restructuring these entities to better fulfill their mandates.

The newly introduced Corporate Governance Scorecard will help assess SOE performance, identify areas for improvement, and implement necessary reforms to boost their productivity.

He stressed that a robust governance framework would ensure transparency, accountability, and the optimal use of public resources.

“The government, through MOFI, has embarked on strategic reforms to reposition SOEs for value creation. The MOFI corporate governance scorecard initiative will enhance the performance of our SOEs,” Edun stated.

Also speaking at the event, the Minister of Power, Mr. Adebayo Adelabu, underscored the importance of transforming SOEs in line with global best practices to meet the demands of Nigeria’s evolving economy.

He highlighted the urgent need for transformation in governance structures, particularly in the power sector. Adelabu noted that significant reforms, such as the unbundling of the Transmission Company of Nigeria, were steps toward achieving better governance, transparency, and value creation.

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Adelabu emphasized that good corporate governance would ensure operational excellence, boost investor confidence, and safeguard public interest.

He also praised the launch of the scorecard, calling it a vital step toward fostering transparency and building a culture of performance within public enterprises.

Dr. Shamsuddeen Usman, the Chairman of the MOFI Board, reaffirmed the commitment of MOFI’s leadership to adopting a corporate governance code of ethics and professionalism.

He assured stakeholders that the assessment process would be handled by independent third parties to ensure fairness and objectivity.

The World Bank Country Director for Nigeria, Mr. Ndiame Diop, noted the pivotal role SOEs play in Nigeria’s economic transformation.

He emphasized that SOEs, with their presence in key sectors such as power, agriculture, and financial services, had the potential to significantly boost Nigeria’s economic growth and government revenue.