Tinubu moves to sell government’s stake in NNPC, 19 other state-run companies to raise funds  

 

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 Corporation is one of the 20 firms.

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.”

Although Takang failed to mention the other companies besides NNPC, Punch in 2022 revealed a list of 27 national assets the government is considering selling or concessioning.

The assets include:

Tafawa Balewa Square;

National Integrated Power Projects (NIPP) in various locations:

Olorunsogo plant

Calabar II plant

Benin (located at Ihorbor) plant

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 Corporation (NNPC)

Federal Government-owned hotels and landed properties

Government ministries, like the postal service