Amid Nigeria’s fiscal crisis, the Federal Government is compiling the list of assets that will be either sold or ‘concessioned’ to fund the 2023 budget deficit of N10.7tn.
Sources at the Ministry of Finance, Budget and National Planning told The PUNCH that the government was considering selling or concessioning the Tafawa Balewa Square in Lagos as well as all the National Integrated Power Projects in Olorunsogo, Calabar II, Benin (located at Ihorbor), Omotosho II and Geregu II plants.
The government is also planning to sell or concession all the hydro power plants across the country, including Oyan, Lower Usuma, Katsina-Ala and Giri plants.
More than 25 of such projects will be turned into active assets that will be generating money in some ways to the Federal Government.
Some of them will be offered to investors for equity while others will be totally sold to reduce waste.
The government is also eyeing revenue from Calabar and Kano free zones as well as Abuja Water Board, Aluminium Smelter Company of Nigeria, National Film Corporation, National Theatre and Lagos International Trade Fair.
The government is also planning to relinquish the ownership of some of the basin authorities and hand them over to the private sector to manage.
However, sources said they could either be sold or concessioned – depending on the preference of the core investors.
Some of the government ministries such as the postal service will be concessioned or entirely sold to the private sector to enable them to compete effectively with other privately- managed logistics firms.
It was also gathered that the Federal Government was seeking ways of enhancing the value of the Nigerian National Petroleum Corporation by listing it in the stock market to raise capital as was done the case with Saudi Aramco.
Saudi’s state-owned oil company went out to raise $25.6bn from an IPO in 2019, surpassing Alibaba’s $25bn valuation five years earlier.
The now commercial enterprise is valued between N30tn and N50tn, and the government is planning to make it a veritable source of revenue and returns for the government and the shareholders next year.
“This government may not benefit from the sale of these assets. It is a little bit late but the plan is to ensure we make all those dead assets alive. Let us cut wastes at least,” one of our sources said.
Sources further told The PUNCH that the Federal Government will extend its tentacles to hotels and landed properties, especially those that could be described as dead capital, to raise money.
The BPE’s Head of Public Communications, Mr Uzoma Chidi Ibeh, told The PUNCH that there was no bidder yet for the assets.
“The list is being compiled. There is no bidder yet, but we have a register of all the assets,” he said.
He confirmed that all the NIPP projects would be concessioned, stressing that the government was desirous of stopping wastage incurred by those assets.
“The Federal Government is putting a lot of money into financing those projects. The government pays staff liability and salaries but it is tired of paying them. Our interest is to stop those expenses,” he said.
He said the interest of the government was to have real investors and not firms that would be stripping the nation’s assets.
“The capacity is more important. We don’t want to get someone who will be stripping the national assets,” he said, noting that the essence of the effort was to fund the 2023 budget.
Professor of Economics at Nnamdi Azikiwe University, Uche Nwogwugwu, wondered how much the government would make from such assets, noting that the current regime might handicap the incoming government in 2023 by selling the assets.
