In a bid to raise capital and enhance the operational efficiency of state-run companies, the Federal Government of Nigeria is considering selling stakes in approximately 20 such entities.
A recent Bloomberg report reveals that potential candidates for stake sales include the Nigerian National Petroleum Corporation (NNPC). Armstrong Takang, CEO of the Ministry of Finance Incorporated, disclosed that the government is evaluating various avenues, such as strategic sales and initial public offerings (IPOs), with a goal to execute the plan within 18 months.
The primary focus of these efforts is to create value rather than maintain control, as some entities would benefit from private sector involvement in majority ownership.
Takang emphasized that possessing a 49% stake in a high-performing enterprise is preferable to holding a 90% share in an underperforming one, echoing the government’s strategy to optimize returns.
These proposed stake sales align with President Bola Tinubu’s comprehensive economic reform agenda. The Ministry of Finance Incorporated is currently in the process of enlisting experts, including valuators, financial advisors, legal professionals, bankers, and others, to oversee different aspects of the transactions.
This initiative follows a previous indication from October 2022, when sources within the Ministry of Finance, Budget, and National Planning reported that the government was deliberating the sale or concession of approximately 27 national assets.
The roster included landmarks like Tafawa Balewa Square in Lagos, as well as crucial infrastructural projects such as the National Integrated Power Projects spread across various locations.
These endeavors reflect a strategic shift to transform idle assets into revenue-generating ventures that contribute to the country’s fiscal sustainability.
It’s worth noting that the idea of divesting national assets to bolster revenue has been under consideration by the Federal Government since 2016.
READ OTHER STORIES:
Three Nigerian Students Studying In The UK Face Deportation Over Late School Fees Payment
President Tinubu Mourns Troops Killed In Helicopter Crash
NLC Warns of Nationwide Strike Over Potential Fuel Price Increase
Nigeria’s Inflation Rise To 24.08% In July — NBS
Curbing Corruption in Nigeria Requires Comprehensive Approach- Reps Speaker
