The Federal Government contemplates selling shares in approximately 20 state-run firms to bolster funds and enhance company governance, as stated in a Bloomberg article. The list includes the Nigerian National Petroleum Corporation (NNPC). Armstrong Takang, CEO at the Ministry of Finance Incorporated, conveyed the government’s inclination towards strategic sales and IPOs, with a projected timeline of 18 months. Takang emphasized the potential benefits of private sector involvement, suggesting the government’s priority is value creation over control. He asserted, “Owning 49% of a high-performing company is preferable to 90% of an underperforming one.”
This initiative might align with President Bola Tinubu’s economic reform agenda. Consultants from various fields, including finance and law, are being engaged to manage transaction facets. In 2022,the government’s consideration of selling or concessioning 27 national assets, ranging from landmarks to power projects. The objective is to transform these into revenue-generating assets for the Federal Government. Discussions about selling national assets for revenue enhancement have been ongoing since 2016.