In a move aimed at raising funds and enhancing governance within state-run entities, the Federal Government of Nigeria is reportedly considering the sale of stakes in approximately 20 government-owned companies.
According to a recent Bloomberg report, the Nigerian National Petroleum Corporation (NNPC) is among the prominent firms that may undergo this transformation.
Armstrong Takang, the Chief Executive Officer at the Ministry of Finance Incorporated, revealed that the government is exploring various options, including strategic sales and initial public offerings, as part of its efforts to carry out the plan within the next 18 months. Takang emphasized that the overarching goal is to generate value for the country’s economy rather than retaining complete control over these entities.
Takang stated, “Our aim is to own 49 per cent of a high-performing entity than 90% of an entity that is underperforming.” This move aligns with President Bola Tinubu’s broader economic reform agenda, indicating a concerted effort to drive positive change and invigorate Nigeria’s economic landscape.
To facilitate this ambitious initiative, the Ministry of Finance Incorporated is actively in the process of appointing a team of expert consultants, including valuers, financial advisers, lawyers, bankers, and other professionals, who will collectively oversee various aspects of these transformative transactions.
Sources at the Ministry of Finance, Budget and National Planning previously disclosed that discussions around the sale or concessioning of national assets gained momentum in October 2022. The assets in question encompass a wide range of key infrastructure projects, such as the Tafawa Balewa Square in Lagos and multiple hydropower plants across the nation.
With more than 25 of these projects slated for transformation into active revenue-generating assets, this initiative holds significant potential for bolstering the Federal Government’s financial resources. Notably, this move builds upon discussions that have been ongoing since 2016, underscoring the government’s commitment to innovative approaches to revenue generation and economic growth.