The Nigerian government is contemplating the sale of ownership stakes in around 20 state-run enterprises as part of an effort to generate funds and enhance governance within these entities, reports from Bloomberg reveal. Notably, the Nigerian National Petroleum Corporation stands among the companies that may undergo this transformation, with Armstrong Takang, CEO of the Ministry of Finance Incorporated, shedding light on the potential move. Takang indicated that a range of options, including strategic sales and initial public offerings, are being considered, with the intention of implementing this plan within the next 18 months.
Key focus lies in inviting the private sector to assume control in some of these entities, as the government prioritizes value creation over retaining control. Takang explained, “Our aim is to hold a 49% stake in a high-performing company, as opposed to maintaining a 90% share in an underperforming one.”
This endeavor coincides with President Bola Tinubu’s broader economic reform strategy for the country. The Ministry of Finance Incorporated is presently in the process of enlisting a range of professionals, including appraisers, financial consultants, legal experts, bankers, and others, to manage various aspects of these transactions.
Reports originating from the Ministry of Finance, Budget, and National Planning in October 2022 had previously hinted at the government’s contemplation of selling or leasing approximately 27 national assets. These assets encompassed notable sites such as the Tafawa Balewa Square in Lagos, along with vital energy projects like the National Integrated Power Projects in Olorunsogo, Calabar II, Benin, Omotosho II, Geregu II, and numerous hydropower plants across the nation, including those in Oyan, Lower Usuma, Katsina-Ala, and Giri. The ultimate aim is to transform over 25 of these projects into active revenue generators for the Federal Government.