There are indications that the Federal Government may soon sell some of its stakes in about 20 state-run companies.
The planned move, it was learnt, is part of strategies by the government to raise funds and improve governance in the entities.
A Bloomberg report quoted the chief executive officer at the Ministry of Finance Incorporated, Armstrong Takang, to have made the disclosure and listed the Nigerian National Petroleum Corporation Limited (NNPCL) as one of the firms the government may sell a stake in.
He stated that the agency is considering options including strategic sales and initial public offerings and aims to implement the plan within 18 months.
According to Takang, 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 was quoted to have m said, “It is better for us to own 49 per cent of a high-performing entity than 90% of an entity that is underperforming.”
These sales may coincide with President Bola Tinubu’s plan to reform the country’s economy.
Takang stated that the agency is in the process of appointing consultants including valuers, financial advisers, lawyers, bankers, and others to handle different aspects of the transactions.
The Ministry of Finance, Budget and National Planning was previously reported to have said that the federal government was considering the sale or concessioning of about 27 national assets including the 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.
