MOFI - Nigeria Risks Losing Digital Wealth Without Local Tech Ownership

Dr Armstrong Takang, Managing Director of Ministry of Finance Incorporated (MOFI), has warned that Nigerians stand to lose the wealth generated by the digital economy unless they take a more active role in investing in and owning technology businesses.

Takang made the remarks on Thursday in Lagos at the Gulf Information Technology Exhibition (GITEX) Nigeria, an event centred on the convergence of technology, finance and investment.

He stressed the need for greater domestic involvement in financing technology companies, noting that Nigeria had made considerable strides in building its tech ecosystem over the past two decades. That progress, he warned, could translate into limited economic benefit for Nigerians if they continue to play only a marginal role in funding technology ventures.

According to him, Nigeria's push to develop its technology sector stems from a recognition that the country cannot afford to remain merely a consumer of digital products and services. The goal, he said, is to build an ecosystem in which Nigerian companies can develop software, deliver digital services, generate data, and deploy technology to grow their own businesses.

Takang identified access to capital as a key barrier, calling on Nigerian investors and capital allocators to become more actively involved in funding technology firms, especially at the pre-seed and early stages. He noted that while several Nigerian tech companies have grown into highly valued enterprises, foreign investors frequently hold substantial equity in them, having supplied much of the capital needed for their expansion.

"Every time they move up in the rounds, the Nigerian equity has been diluted and the foreign capital allocators are taking positions in these companies," he said.

He argued that increased domestic participation in early-stage funding would allow Nigerians to retain a larger share of the value created when successful companies pay dividends, get acquired, or go public. He urged individuals, institutions and investment managers to view technology as an investment opportunity rather than simply a sector for consumption.

Takang also spoke about MOFI's shift toward a more active management approach for Federal Government investments and assets, moving away from its historical role as a largely passive custodian. He pointed to the decline of entities such as Nigeria Airways, NEPA, Nigerian Shipping Lines and NITEL as examples of what can happen under passive ownership.

He described the ministry's new approach as one that pairs ownership with active stewardship, aimed at ensuring government assets are well-managed, productive, profitable and capable of generating broader economic impact.

"Every Nigerian is the owner of the assets that we are managing, government institutions are merely stewards of the assets," he said, adding that this principle makes transparency and accountability essential to how public assets are managed.

Takang said technology would be central to cataloguing, managing and unlocking value from government assets. He disclosed that MOFI is compiling comprehensive records of government-owned assets, including real estate, infrastructure and creative-industry holdings. So far, more than 2,000 art pieces are being valued, while roughly 600 real estate assets have been identified and documented. The exercise will eventually extend to infrastructure such as dams, roads and bridges, as well as other assets including solid minerals.

He explained that digitising records of asset ownership and status would boost transparency and make it easier to attract investment. Digital platforms, he added, could also enable the tokenisation of assets — structuring ownership interests in ways that draw in a wider pool of investors, allowing them to establish ownership stakes, participate in investments, and potentially trade their interests.

Takang also referenced Project Bridge, a public-private initiative to roll out more than 90,000 kilometres of fibre infrastructure across Nigeria, under which the private sector would hold a majority stake while government retains a minority position — an illustration, he said, of how public assets and private capital can combine to deliver large-scale infrastructure and help overcome financing constraints that have historically hindered such projects.

He concluded that bringing together technology, finance and investment presents an opportunity to convert Nigeria's vast asset base into productive capital that supports economic growth.

Also speaking at the event, Dr Nurudeen Zauro, Technical Adviser to the President on Economic and Financial Inclusion, said the Federal Government is pursuing reforms to create a more favourable environment for investment and growth. He emphasised that collaboration among government agencies, financial institutions and private-sector players is critical to this goal.

Zauro noted that Nigeria's Micro, Small and Medium Enterprises (MSMEs) sector continues to face a significant financing gap, estimated at $32.2 billion. He said government is also working to ease the movement of capital into and out of the country for both domestic and foreign investors, and encouraged Nigerian businesses — particularly tech firms and MSMEs — to seize emerging financing opportunities, partnerships and policy reforms to scale their operations.

He reaffirmed the government's commitment to mobilising investment, strengthening financial inclusion, and ensuring economic opportunities reach businesses and citizens at the grassroots level, while calling for stronger public-private partnerships as a driver of productivity and sustainable growth.