FG considers sharing Sale of NNPC, 19 State-Run Businesses For Enhanced Governance, Funding

The Federal Government is considering selling shares in NNPC and 19 other state-owned enterprises in order to acquire revenue and improve organisational governance for economic development.
This is in line with a story from Bloomberg. According to Armstrong Takang, the CEO of the Ministry of Finance Incorporated, one of the businesses the government may sell an interest in is the Nigerian National Petroleum Corporation.
The agency, according to him, is looking at options like strategic sales and initial public offerings with a goal of putting the strategy into action in 18 months, he said.
He pointed out that some organisations require the private sector to acquire controlling stakes, and that the government is more concerned with creating value than controlling it.
“It is better for us to own 49 per cent of a high-performing entity than 90% of an entity that is underperforming.”
It’s possible that these sales align with President Bola Tinubu’s strategy to improve the nation’s economy.
According to Takang, the agency is now hiring specialists to manage various elements of the deals, including valuers, financial counsellors, solicitors, bankers, and others.
The government was reportedly considering selling or granting concessions on roughly 27 national assets in October 2022, according to insiders at the Ministry of Finance, Budget, and National Planning who spoke exclusively with The PUNCH.
Tafawa Balewa Square in Lagos, the National Integrated Power Projects at Olorunsogo, Calabar II, Benin (located at Ihorbor), Omotosho II, Geregu II plants, and all of the hydropower plants throughout the nation, including the Oyan, Lower Usuma, Katsina-Ala, and Giri plants, were among the assets.
The sources revealed that more than 25 of these initiatives will be turned into operational assets that will help the federal government financially in certain ways.
Since 2016, the Federal Government has debated the notion of raising more money by selling some public assets.

Source: Allnews Nigeria

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