President Muhammadu Buhari administration is seeking the National Assembly approval for the sale of national assets largely to finance the N13.58 trillion 2021 budget,
At least 36 of Nigeria’s tax-payers properties were listed in the executive document titled “NCP Approved 2021 Work Plan.”
The document 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.
These properties cut across energy, industries, communication, and infrastructural sectors and are expected to be sold or concessioned between January 2021 and November 2022, the news platform reported.
Some of the properties include 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.
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’.
Some properties have been enlisted to be sold to a ‘willing buyer’.
A core investor sale is the transfer of at least 51 percent 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.
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 an agreement between both parties.
In the approved 2021 budget, about N496.5 billion was approved for statutory transfers, and N3.3 trillion was approved for debt services.
The recurrent expenditure was put at N5.6 trillion with capital expenditure at N4.1 trillion and fiscal deficit at N5.2 trillion (5,196,007,992,292).
Many have condemned the Nigerian government’s consistent resolve to borrow to fund budgets annually. For this year, the government is to borrow N5.6 trillion from domestic and foreign resources. The amount being the total deficit for the 2021 budget.
Both the president and Nigeria’s finance minister, Zainab Ahmed, had said Nigeria will borrow money from the World Bank, the Islamic Development Bank, and countries like Brazil to fund the budget.