The Federal Government is contemplating the sale of ownership stakes in approximately 20 state-operated enterprises as disclosed in a comprehensive report by Bloomberg.
Among the high-profile firms under consideration for partial divestiture is the Nigerian National Petroleum Corporation (NNPC), according to insights provided by Armstrong Takang, CEO at the Ministry of Finance Incorporated.
Takang outlined that the spectrum of options encompasses strategic sales and initial public offerings, with an ambitious target of implementing the blueprint within the next 18 months. This strategic initiative arrives on the heels of President Bola Tinubu’s visionary plan for economic reform.
The pivotal goal of this endeavor, as highlighted by Takang, is not merely retaining control, but cultivating value through private-sector involvement.
He expounded, “It is better for us to own 49 per cent of a high-performing entity than 90% of an entity that is underperforming.”
This forthcoming series of divestitures is expected to be a vital step towards revitalizing the nation’s economy. The government is in the process of assembling a team of consultants, comprising valuers, financial advisers, lawyers, and bankers, to oversee the intricate facets of these transactions.
Sources within the Ministry of Finance, Budget, and National Planning had exclusively revealed in October 2022 that this plan was brewing.
The scope of assets earmarked for potential divestiture is impressive, spanning from iconic landmarks like the Tafawa Balewa Square in Lagos to critical power projects nationwide, such as Olorunsogo, Calabar II, Benin, Omotosho II, Geregu II plants, and multiple hydropower plants, including Oyan, Lower Usuma, Katsina-Ala, and Giri plants.
This comprehensive strategy aims to galvanize numerous projects into dynamic revenue generators for the Federal Government, aligning with a recurring notion that has been in contemplation since 2016: leveraging national assets to bolster the nation’s fiscal standing.