February 22, 2024

FG to sell some national assets to pay off debt, fund 2023 budget

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Some national assets have been earmarked for sale to generate revenue to fund the 2023 budget and pay off debt. Already 42 assets across the country have been put up for sale across the different sectors of the economy.

The Federal Government had made it clear that it would sell or give some national assets to raise funds to finance the 2023 budget deficit of N10.78 trillion.

The Punch reports other ways the federal government is looking to raise revenue for the budget are through borrowing and project-specific loans.

President Muhammdu Buhari revealed the plan on Friday while presenting the Appropriation Bill of N20.51 trillion for 2023 to the Senate and the House of Representatives.

The budget includes N2.42 trillion in spending by government-owned enterprises. It is also about N3 trillion higher than the 2022 budget.

National Assets for sale in 2022

Earlier in the year the Bureau of Public Enterprises (BPE) announced the sale or concession of 42 assets across the country.

The Vanguard reports that some of the listed assets include the Aluminium Smelter Company of Nigeria (ALSCON) and Olorunsogo II Power Plant, among 42 transactions to be undertaken this year.

The transactions are 11 in the Energy Sector, 10 in the Industries and Services Sector, eight in the Agriculture and Natural Services Sector, and 13 in the Infrastructure and Public Private Partnership (IPPP) sector.

Full list

Olorunsogo II Power Plant (NIPP)

Calabar II power plant (NIPP)

Benin (Ihovbor) II Power Plant (NIPP)

Omotosho II Power Plant (NIPP)

Geregu II Power Plant (NIPP)

Afam Power and Afam Three Fast Power Ltd

Yola Electricity Distribution Company

Zungeru Hydro Power

Nigerian Film Corporation

NITEL/MTEL In-liquidation

Abuja Water Board (AWB); Abuja International Conference Centre

Abuja Environmental Protection Board (AEPB)

Save Sugar Company (SSC) – Divestment of FGN Shares

Nigeria Hotel Ltd (In-Liquidation)

Partial Commercialisation of River Basin Development Authorities (RBDAs).

Concession

Those for concession include of Tafawa Balewa Square Complex, (TBS) LAGOS; Lagos International Trade Fair Complex (LITFC), Lagos as well as Calabar & Kano Free Trade Zones.

Full Commercialisation of the Federal Housing Authority (FHA) and the Federal Mortgage Bank of Nigeria (FMBN) would be undertaken.

The federal government also planned to recapitalize the Bank of Agriculture (BOA); while pursuing the reform of the Health and Education Sector.

New projects would include Gimi Earth Hydro Power Plant; Lower Usuma Hydro Power Plant; Oyan Hydro Power Plant; Sale of the remaining non-core assets of NCC.

Non-core assets approved for sale

Take-off of Nigerian Mining Investment Holding Company (NMIHC)

Royal Swazi Sugar Company (RSSC)

Sales of non-core assets of Delta Steel Company

Establishment of Passport Application Support Centres

Markurdi Hydro Power Plant

Hydro Power Plants Assets for Concession

Oguma Hydro Power Plant (700mw)

Onitsha Hydro Power Plant (441mw)

Dasin Hausa Hydro Power Plant (138mw)

Katsina-Ala Hydro Power Plant (109mw)

Garin Dalli Hydro Power Plant (92mw)

Kiri Hydro Power Plant (36mw)

Assets Optimisation – Creation pf a National Asset Register.

The list of African countries with the highest debt to China, amount and what the debts are used for

Meanwhile, Legit.ng has reported that Macau is the only country in the world that is debt-free, according to the International Monetary Fund (IMF).

The world’s greatest economies rank among the 20 countries with the highest external debts.

According to a Daily Trust report, they are the US, Russia, United Kingdom, France, Germany, Japan, and China.

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