Federal Government under the leadership of President Muhammad Buhari has listed over 25 Nigeria properties that will be either sold or ‘concessioned’ to fund the N10.7trn 2023 budget deficit.
Recall that President Muhammadu Buhari has said that the 2023 budget deficit of N10.78 trillion would be funded by borrowing, as well as sales of national assets and project-specific loans.
The president made the revelation, on Friday, October 7, 2022, while presenting the Appropriation Bill of N20.51 trillion for 2023 to the Senate and the House of Representatives at a joint session of the National Assembly.
The budget includes N2.42 trillion spending by government-owned enterprises. It is also about N3 trillion higher than the 2022 budget.
According to the 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.
!It was reported that 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 waste at least,” a source said.
