The federal government of Nigeria may sell holdings in approximately 20 state-run enterprises to raise revenue and strengthen governance.
According to Armstrong Takang, chief executive officer of the Ministry of Finance Incorporated, the Nigerian National Petroleum Corporation (NNPC) is one of the companies in which the government may sell an interest. He indicated that the agency is evaluating possibilities such as strategic sales and initial public offerings, and that the plan will be implemented within 18 months.
He stated that some of the institutions require the private sector to take controlling stakes, and the government’s primary consideration is to produce value rather than retain control.
“It is better for us to own 49% of a high-performing entity than 90% of an underperforming entity,” he remarked.
These sales could correlate with President Bola Tinubu’s economic reform strategy. Takang noted that the agency is in the process of recruiting specialists to manage various parts of the deals, such as valuers, financial advisers, lawyers, bankers, and others.
Sources at the Ministry of Finance, Budget, and National Planning exclusively told The PUNCH in October 2022 that the government was considering selling or concessioning approximately 27 national assets.
Tafawa Balewa Square in Lagos was among the assets, as were the National Integrated Power Projects in Olorunsogo, Calabar II, Benin (located at Ihorbor), Omotosho II, Geregu II plants, and all hydropower plants throughout the country, including the Oyan, Lower Usuma, Katsina-Ala, and Giri plants.
According to the sources, more than 25 of these projects will be turned into active assets that will generate money for the federal government in some way. Since 2016, the federal government has considered selling various public assets in order to increase revenue.