Just In: Nigeria To Raise N400BN From Sale Of Govt-Owned Companies This Year
Buhari’s government is planning a massive privatization drive that will see it raising as much as 400 billion naira before the end of this year.
According to Alex Okoh, who is the Director General of Bureau of Public Enterprises, the government has finalised plans to start a post-privatisation program for its power sector with a $1 billion credit from the World Bank to boost power distribution and transmission which has underperformed.
Okoh told Reuters last week that the government has a list of 11 assets it plans this year either to sell to strategic investors or offer to private companies to lease and run on concession, ranging from power assets to sports stadiums.
Sources have also said the government plans to sell part of its stake in Nigerian Reinsurance company through an IPO in November.
Okoh also said that the power sector was among 37% of privatised enterprises that have underperformed, without providing a figure on how many assets have so far been sold by the government.
He added that the country has attracted $7.8 billion in foreign investment into 53 privatised entities.
In 2013, Nigeria started selling parts of its moribund state electricity firm in a privatisation that was meant to improve power supplies and attract billions of dollars in new investments - neither of which happened as no investment was attracted and the country is still being plagued by blackouts.
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