The Federal Government is allegedly considering selling holdings in approximately 20 state-owned companies in what may be connected to the current realities of the Nigerian economy.
According to Bloomberg, the action is intended to raise capital and enhance corporate governance in the corporations.
The organizations include Nigerian National Petroleum Corporation Limited (NNPCL), according to Armstrong Takang, Chief Executive Officer of Finance Ministry Incorporated, an entity of the Federal Ministry of Finance, Budget, and National Planning.
Takang stated that the agency was evaluating options such as strategic sales and initial public offerings, and that the strategy would be implemented within 18 months.
According to him, some of the companies 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 per cent of a high-performing entity than 90% of an entity that is underperforming’, Takang said.
Takang also indicated that the agency is in the process of recruiting specialists to manage various elements of the deals, such as valuers, financial advisers, lawyers, bankers, and others.
The idea of selling the government’s ownership in the enterprises may be in accordance with President Bola Tinubu‘s economic reform plan.
In October 2022, the Ministry of Finance, Budget, and National Planning stated that the government was considering selling or concessioning roughly 27 national assets.
Tafawa Balewa Square in Lagos, the National Integrated Power Projects at Olorunsogo, Calabar II, Benin (located at Ihorbor), Omotosho II, Geregu II plants, and all hydropower plants throughout the country, including Oyan, Lower Usuma, Katsina-Ala, and Giri plants, were among these assets.
