Tinubu Initiates Plan to Divest Government Stake In NNPC And 19 Other State-Owned Companies For Capital Infusion

Tinubu Initiates Plan to Divest Government Stake In NNPC And 19 Other State-Owned Companies For Capital Infusion....KINDLY READ THE FULL STORY HERE▶

As Nigeria grapples with economic challenges, a strategic move is underway to boost revenue by selling the government’s ownership shares in nearly 20 state-run enterprises.

Among the entities under consideration for divestment is the Nigerian National Petroleum Corporation (NNPC), as indicated in a recent Bloomberg report…CONTINUE READING.

Elaborating on the government’s approach, Armstrong Takang, the Chief Executive Officer at the Ministry of Finance Incorporated, shared insights into the planned share sales. Takang revealed that the sales would target strategic investors, with the potential avenues for divestment including strategic sales and initial public offerings (IPOs). The implementation timeline for this endeavor is set at 18 months.

Takang stressed that certain entities are poised to benefit from private sector involvement, necessitating the transfer of controlling shares. He emphasized that the government’s primary focus is on generating value rather than retaining control, stating, “It is better for us to own 49% of a high-performing entity than 90% of an entity that is underperforming.”

Although the complete list of the companies up for sale was not explicitly outlined by Takang, a previous 2022 report by Punch provided insights into the government’s contemplation of divesting or concessioning 27 national assets. This list encompasses a diverse array of entities, including:

1. Tafawa Balewa Square
2. National Integrated Power Projects (NIPP) in various locations:
– Olorunsogo plant
– Calabar II plant
– Benin (located at Ihorbor) plant
– Omotosho II plant
– Geregu II plant
3. Hydropower plants across the country:
– Oyan plant
– Lower Usuma plant
– Katsina-Ala plant
– Giri plant
4. Calabar and Kano free trade zones
5. Abuja Water Board
6. Aluminium Smelter Company of Nigeria
7. National Film Corporation
8. National Theatre
9. Lagos International Trade Fair
10. Nigerian National Petroleum Corporation (NNPC)
11. Federal Government-owned hotels and landed properties
12. Government ministries, including the postal service

This strategic effort signifies a proactive step to stimulate financial inflow into the government’s coffers and strengthen the country’s economic outlook.

As Nigeria grapples with economic challenges, a strategic move is underway to boost revenue by selling the government’s ownership shares in nearly 20 state-run enterprises.

Among the entities under consideration for divestment is the Nigerian National Petroleum Corporation (NNPC), as indicated in a recent Bloomberg report.

Elaborating on the government’s approach, Armstrong Takang, the Chief Executive Officer at the Ministry of Finance Incorporated, shared insights into the planned share sales. Takang revealed that the sales would target strategic investors, with the potential avenues for divestment including strategic sales and initial public offerings (IPOs). The implementation timeline for this endeavor is set at 18 months.

Takang stressed that certain entities are poised to benefit from private sector involvement, necessitating the transfer of controlling shares. He emphasized that the government’s primary focus is on generating value rather than retaining control, stating, “It is better for us to own 49% of a high-performing entity than 90% of an entity that is underperforming.”

Although the complete list of the companies up for sale was not explicitly outlined by Takang, a previous 2022 report by Punch provided insights into the government’s contemplation of divesting or concessioning 27 national assets. This list encompasses a diverse array of entities, including:

1. Tafawa Balewa Square
2. National Integrated Power Projects (NIPP) in various locations:
– Olorunsogo plant
– Calabar II plant
– Benin (located at Ihorbor) plant
– Omotosho II plant
– Geregu II plant
3. Hydropower plants across the country:
– Oyan plant
– Lower Usuma plant
– Katsina-Ala plant
– Giri plant
4. Calabar and Kano free trade zones
5. Abuja Water Board
6. Aluminium Smelter Company of Nigeria
7. National Film Corporation
8. National Theatre
9. Lagos International Trade Fair
10. Nigerian National Petroleum Corporation (NNPC)
11. Federal Government-owned hotels and landed properties
12. Government ministries, including the postal service

This strategic effort signifies a proactive step to stimulate financial inflow into the government’s coffers and strengthen the country’s economic outlook.