Related Articles
According to reports, the Federal Government has begun to develop a list of the assets that would either be sold or “concessioned” to cover the N10.7 trillion budget shortfall for 2023.
Thank you for reading this post, don't forget to subscribe!
According to sources at the Ministry of Finance, Budget, and National Planning, 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 were being considered for sale or concession, according to Punch.
According to the sources, the federal government also intends to sell or concession all of the nation’s hydroelectric plants, including the Oyan, Lower Usuma, Katsina-Ala, and Giri plants. According to reports, the Federal government also intends to turn more than 25 of these projects into operational assets that will in some ways generate income for the Nigerian government. To cut down on waste, some of them will be sold completely while others will be provided to investors as equity.
According to reports, the federal government is also interested in the money from the free zones in Calabar and Kano, as well as from the Abuja Water Board, the Nigerian Aluminum Smelter Company, the National Film Corporation, the National Theatre, and the Lagos International Trade Fair. Additionally, the government intends to turn over management of some of the basin agencies to the private sector.
Nevertheless, sources claimed that depending on the core investors’ preferences, they might either be sold or granted concessions.
To better compete with other privately-managed logistics companies, several government departments, like the postal service, will be given concessions or completely sold to the private sector. It was also learned that the Federal Government was looking for ways to raise funds by listing the Nigerian National Petroleum Corporation on the stock market, much like Saudi Aramco had done. In 2019, Saudi Arabia’s state-owned oil business raised $25.6 billion through an IPO, exceeding Alibaba’s $25 billion value from five years earlier.
Government sources further claim that in order to raise money, the Federal Government will reach out to hotels and landed properties, particularly those that can be considered to be “dead capital.” According to reports, the Federal government wants to discontinue paying salaries in certain government-owned properties in order to save waste and boost the economy.
The Federal Government would sell part of its assets through equity investments, according to Finance Minister Zainab Ahmed, who made the announcement at a cabinet briefing on Wednesday in Abuja. She stated that in order to raise money, the government would impose tolls on select federal roads.
She pointed out that in the future, even the Ministry of Finance would be producing for the government.
“We have begun the process of re-engineering the Ministry of Finance Incorporated, a department charged with overseeing government investments.
The same laws have been in place for a long time, and it has gradually grown to be fairly ineffective. So, we now have Mr. President’s blessing to revive MOFI. We have conducted numerous studies. We have reached the point where the new MOFI will be able to debut within the next month or six weeks.
These assets will be made available for investment. To invest in these assets, we are issuing several types of equity securities. She stated
