Barely a month after the Federal Government sold its shares in the Nigerian Security Printing and Minting Company (NSPM) to the Central Bank of Nigeria, the President Muhammadu Buhari-led administration is ready to offer more of its assets for sale.
The Federal Government is selling its assets using the ongoing privatisation programme. The assets being sold is aimed at raising more money to implement the country’s 2018 deficit-based budget.
Governor Godwin Emefiele of the Central Bank of Nigeria (CBN), while revealing this, said he’s aware of the situation of Ajaokuta Steel Company of Nigeria that is ready for sale.
The CBN boss said that as a member of the National Council on Privatisation, more assets are to be sold.
“I believe in due course that the Bureau of Public Enterprise (BPE) will make this available for us.” Emefiele added.
Nairametrics had reported that the Federal Government’s plan to commence the sell-off of several state-owned assets is geared at raising funds that will go towards financing the country’s expensive 2018 budget.
Come early October 2018, the Government will commence the sale of assets in ten state-owned corporations, a move that is expected to generate some ₦289 billion; about $797 million.
Why FG is selling its assets
The poor implementation of the 2018 budget has not augured well for the Nigerian economy which recently emerged from a debilitating economic recession. To worsen this situation, a recent analysis by Nairametrics shows that the country has continued to gradually slip back into recession since Q1 2018 when the GDP declined by 1.95%.
Now as the Nigerian election season continues to approach fast, there are growing concerns that the present economic situation may become exacerbated due to huge spendings which may ultimately drive up inflation.
Meanwhile, the Government had in the past hinted at plans to fund the budget with money from other sources other than oil which is the country’s economic mainstay. To this effect, the Bureau of Public Enterprise made a commitment to the tune of ₦306 billion, most of which it is now trying to raise through the planned privatisations.