Nigeria Tightens GOE Oversight with Performance Scorecard

The Federal Government of Nigeria has escalated oversight of Government-Owned Enterprises (GOEs) through the introduction of a performance scorecard by the Ministry of Finance Incorporated (MOFI). The tool is designed to monitor operational efficiency, governance compliance, and financial contributions, directly informing decisions on consolidation, expansion, restructuring, or exit of government investments.

The scorecard is part of a broader fiscal strategy aimed at raising revenues, reducing leakages, and narrowing the national budget deficit. Digitised revenue collection systems and performance-linked incentives complement the initiative.

DECISION HIGHLIGHT

Decision Context:
Persistent fiscal deficits, weak remittances from GOEs, and growing pressure to increase government revenue.

Strategic Action:
Deployment of a GOE performance scorecard, integrated with digitised revenue systems and performance-based incentives.

Policy Driver:
Presidential directive to enforce accountability and eliminate inefficiencies across revenue-generating agencies.

Strategic Objective:
Boost GOE remittances, improve asset performance, and reduce fiscal deficits through disciplined management and active ownership.

DECISION MEMO

Nigeria’s challenge with GOEs has historically been less about quantity than performance. Many enterprises hold valuable assets but contribute minimally to public revenue due to poor governance, opaque reporting, and weak enforcement.

The Tinubu administration’s approach marks a shift from passive ownership to active stewardship. By introducing a scorecard measuring efficiency, governance standards, and financial outcomes, MOFI reframes GOEs as portfolio assets rather than administrative appendages of government.

Behavioral incentives reinforce this shift. The MOFI Excellence Awards, launching in 2026, reward transparency, compliance, and strong performance, making underperformance visible and harder to ignore.

Technology underpins the reforms. Planned digitisation includes standardised electronic collections, interoperable payment systems, automated reconciliation, data-driven risk profiling, and real-time dashboards. These measures aim to close historical gaps between revenue collection and remittance, reducing leakages and improving fiscal accountability.

Presidential enforcement ensures that underperformance carries political consequences, positioning GOE efficiency as a macroeconomic, not merely administrative, concern. If sustained, these reforms could transform GOEs from fiscal liabilities into reliable contributors to national revenue, while clarifying which entities merit additional capital, restructuring, or divestment.

DATA BOX

• Policy tool introduced: GOE performance scorecard
• Implementing institution: Ministry of Finance Incorporated (MOFI)
• Performance incentive: MOFI Excellence Awards (first full cycle in 2026)
• Digitisation measures planned:
  – Standardised electronic collections
  – Interoperable payment systems
  – Automated reconciliation
  – Data-driven risk profiling
  – Real-time performance dashboards
• Primary fiscal goal: Reduction of budget deficit through higher GOE remittances

WHO WINS / WHO LOSES

Who Wins:

• High-performing GOEs with strong governance
• Treasury accounts benefiting from increased remittances
• Investors and lenders seeking clearer signals on state asset quality

Who Loses:

• Poorly run GOEs with weak compliance
• Management teams relying on opaque financial practices
• Enterprises unable to justify continued government ownership

POLICY SIGNALS

The government is transitioning to an ownership model emphasizing returns, transparency, and accountability, rather than administrative control of state assets.

INVESTOR SIGNAL

Enhanced governance and clear performance metrics strengthen Nigeria’s sovereign credit profile and support confidence in public-sector-linked investments.

RISK RADAR

• Resistance from entrenched GOE interests
• Weak enforcement if political will diminishes
• Capacity limitations in implementing real-time data systems
• Short-term disruption to GOE operations during transition

The tighter oversight of GOEs reflects a broader fiscal recalibration. State ownership is increasingly framed not as entitlement but as a mandated obligation to perform.