The Federal Government is considering selling its stakes in about 20 state-run companies to bolster revenue amid pressing financial challenges.
According to a Bloomberg report, the Nigerian National Petroleum Company Limited is one of the 20 firms.
How government’s shares sale will work
Armstrong Takang, the Chief Executive Officer at the Ministry of Finance Incorporated, who disclosed the move, said the sale would be to strategic investors.
He also revealed that the agency is considering options, including strategic sales and initial public offerings, and aims to implement the plan within 18 months.
Takang explained that some entities need the private sector to take controlling shares, and the primary consideration for the government is to create value rather than retain control.
He said: “It is better for us to own 49% of a high-performing entity than 90% of an entity that is underperforming.”
List of companies up for sale
Although Takang failed to mention the other companies besides NNPCL, it was gathered that the government is considering selling or concessioning 27 national assets
The assets include:
*Tafawa Balewa Square;
National Integrated Power Projects (NIPP) in various locations:
*Olorunsogo plant;
*Calabar II plant;
*Benin plant (located at Ihorbor);
*Omotosho II plant;
*Geregu II plant;
Hydropower plants across the country:
*Oyan plant;
*Lower Usuma plant;
*Katsina-Ala plant;
*Giri plant
- Calabar and Kano free trade zones
- Abuja Water Board
- Aluminium Smelter Company of Nigeria
- National Film Corporation
- National Theatre
- Lagos International Trade Fair
- Nigerian National Petroleum Company (NNPCL)
- Federal Government-owned hotels and landed properties
- Government ministries, like the postal service
Good, bad news for Nigeria as global crude oil prices rise to highest level in 2023
Meanwhile, another report revealed Nigerians would have to prepare for another price increase in the coming days if the situation of the naira doesn’t improve and global crude prices continue to rise.
However, the message from the Independent Petroleum Marketers Association of Nigeria (IPMAN) to Nigerians is “not to panic”.
SOURCE: Legit.ng
