Nigeria To Sell Refineries, ICC, TCN, 33 Others (See Why)

The Federal Government of Nigeria is proposing to sell or concessioned no fewer than 36 of its properties to raise funds to finance the 2021 budget. 

The properties cut across energy, industries, communication and infrastructural sectors and they are expected to be sold or concessioned between January 2021 and November 2022.

According to the Premium time's reports, the document was submitted to the National Assembly by the Executive and titled “NCP Approved 2021 Work Plan.” It shows the names of the “projects” (as described by the document), the sale strategy, the duration of the process as well as the cost of the properties.

The document shows that the 36 projects have been categorised into five departments, energy with nine projects, industries and communications department with eight projects and development institutions and natural resources with six projects.

Others are infrastructure and a public-private partnership with four projects and post-transaction management department with nine projects.

Top among these properties are the 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, among others.

READ ALSO: Refineries Remained Dormant For Three Months, Record Losses

The federal government’s decision to sell or concession these properties is to help fund the N13.58 trillion 2021 budget signed by President Muhammadu Buhari on December 31, 2020.

There are, however, different sale strategies for the properties. While some are ‘core investor sales’, a few others are for ‘share sales’. Some are for ‘concessioning’ and others for ‘full or partial commercialisation’.

Meanwhile, some properties have been enlisted to be sold to a willing buyer.

A core investor sale is the transfer of at least 51 per cent ownership, accompanied by management control, in a company from the government to new private owners.

 

The core investor, according to the Bureau of Public Enterprise (BPE), maybe individuals or firms, Nigerian or foreign, with the money required to buy and operate the company, and the technical and managerial capabilities needed to ensure that the company is profitable.

 

Similarly, a concession is a form of Public-Private Partnership (PPP) where a government-owned asset is being operated and maintained by a private investor for a period of time on terms contained in a concession agreement.

 

Here is the summary of the properties to be sold or confessed.