FG to Sell Stakes in NNPC, 19 Other Entities

The Federal Government is set to sell its stakes in the Nigerian National Petroleum Corporation Limited, NNPCL.

Daily Report Nigeria reports that the government may sell off stakes in the 19 other entities alongside NNPCL.

The move is aimed at raising funds as well as improving governance in the said entities, according to the Chief Executive Officer at the Ministry of Finance Incorporated, Armstrong Takang, Bloomberg reported.

Takang said the ministry is considering making strategic sales as well as initial public offerings with the aim to implement the plan within 18 months.

He noted that some of the entities need the private sector to take controlling shares and the major consideration for the government is to create value rather than retain control.

He said, “It is better for us to own 49 per cent of a high-performing entity than 90% of an entity that is underperforming.”

He added the agency is in the process of appointing consultants including valuers, financial advisers, lawyers, bankers, and others to handle different aspects of the transactions.

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Recall that the Ministry of Finance, Budget and National Planning has disclosed plans by the to sell or concession about 27 national assets in October 2022.

The assets included Tafawa Balewa Square in Lagos, the National Integrated Power Projects in Olorunsogo, Calabar II, Benin (located at Ihorbor), Omotosho II, Geregu II plants, all the hydropower plants across the country, including Oyan, Lower Usuma, Katsina-Ala, and Giri plants.

Since 2016, the Federal Government has mulled the idea of selling some national assets to boost its revenue.