- The Nigerian government is set to sell or concession 36 of its properties primarily to finance the 2021 budget of approximately N13.58 trillion 2021 budget.
- The sale of properties cut across energy, industries, communication and infrastructural sectors is expected to take place between January 2021 and November 2022.
The Nigerian government is set to sell or concession 36 of its properties primarily to finance the 2021 budget of approximately N13.58 trillion 2021 budget approved by President Muhammadu Buhari on December 31, 2020
The sale of properties cut across energy, industries, communication and infrastructural sectors is expected to take place between January 2021 and November 2022.The proposal was submitted to the National Assembly titled “NCP Approved 2021 Work Plan include Abuja Environmental Protection Board (AEPB), the Abuja International Conference Centre (ICC), some unnamed refineries, the Transmission Company of Nigeria (TCN), Abuja Water Board, Nigerian Film Corporation, etc. These properties are classified into different sale categories such as ‘core investor sales’, ‘share sales’. ‘Concessioning’ and others for ‘full or partial commercialisation’. Some properties have been enlisted to be sold to a ‘willing buyer’.
A core investor sale indicates the transfer of at least 51 per cent ownership, along with the management control, in a company from the government to new private owners, who may be individuals or firms, Nigerian or foreign, with the money required to buy and operate the company profitably. Concession is a form of Public-Private Partnership (PPP).In this case, a government-owned asset can be operated and maintained by a private investor for a period of time as per the concession agreement.
The 36 projects have been placed under five categories. These include energy with nine projects, industries, and communications department with eight projects and development institutions and natural resources with six projects. Infrastructure and public-private partnership have four projects and post-transaction management department have nine projects.
These projects are; Yola Electricity Distribution Company(Core Investor Sale) Afam Power & Afam Three Fast Power Limited ( Core Investor Sale) Mineral House Lagos (Asset Sale) Geregu Power (20% Shareholding Sale) Zungeru HydroPower(Concession) Transmission Company of Nigeria(Concession)NIPP(Core Investor Sale)NIPOST Restructuring/Modernisation Reform/Restructuring, Nigerian Film Corporation (Commercialisation) AEPB(Concession) Nigerian Hotels (in-liquidation, Resolution of Residual Issues) NITEL/MTEL( Residual Issues Resolution) Abuja Water Board (Commercialisation) FG’s Shares in Sales Sugar Company (Share Sale)ICC(Concession) River Basin Development Authorities (Commercialisation/Concession) Tafawa Balewa Square(Concession)Lagos Intl Trade Fair Complex(Concession) Restructuring of FMBN/FHA(Restructuring) Bank of Agriculture( Restructuring/Recapitalisation) Nigeria Commodity Exchange (Restructuring/Recapitalisation) Evaluation of DISCOs & GENCOs, Evaluation of Ports etc.
Already, the concessioning process has started for four properties; the Tafawa Balewa Square, Lagos International Trade Fair Complex, and the Calabar and Kano Special Economic Zones.
