• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

Privatization: Nigeria aims to put 36 state assets in private hands

Ubah Jeremiah Ifeanyi by Ubah Jeremiah Ifeanyi
August 5, 2021
in Business News, Spotlight
BPE to convert redundant assets to cash to fund N477 billion fiscal budget  

Alex Okoh

Share on FacebookShare on TwitterShare on Linkedin

The Bureau of Public Enterprises (BPE), Nigeria’s privatisation agency, intends to sell 36 state-owned assets in 2021.

This is according to The Economist Intelligence Unit report for July 2021. The BPE intends to raise N493.4 billion (US$1.2 billion) from selling these state-owned assets, which include power-generation plants and free-trade zones.

Why is Nigeria selling its assets?

According to the report, the reason for the assets sale is to generate revenue for the government while also reducing operational inefficiencies and increasing competence through private investments.

RelatedStories

Here is a list of coal-dependent countries as of 2022

Here is a list of coal-dependent countries as of 2022

April 15, 2023
Alex Okoh, ALSCON

BPE to re-concession Lagos International Trade Fair Complex

April 11, 2023

Furthermore, significant shortages in oil and non-oil earnings have resulted in such a massive wave of privatizations. Fiscal revenue was 44.6 % below official budget predictions in the first five months of 2021 and infrastructure investment was considerably below plan.

Privatization in Nigeria has had a poor track record

The Bureau of Public Enterprises, has a lousy track record of following through on its privatization plans. According to the Director-General of the BPE, Alex Okoh:

“Since its creation in 1999, the bureau has generated more than N1 trillion (US$2.4 billion) from the sale, commercialisation and concession of 234 public assets. But many of the transactions occurred in the early years of Nigeria’s privatisation programme. Little progress has been made in the past decade. For the three years to 2020, the Federal Ministry of Finance reported zero privatisation proceeds even though revenue from sales had been expected in each year.”

The report stated that 2019 saw policymakers disclose a proposal to cut government stake in existing joint ventures. Partnerships with global oil corporations to 40%, down from an average of 57.5%, are unquestionably desirous of the opportunity advantages of privatization. However, the authorities have been hampered by a number of roadblocks. Ownership and control of public assets are being relinquished. It is unlikely that the BPE will meet its 2021 objective.

Bottlenecks to privatization in Nigeria

The deterrents to privatization in Nigeria can be traced to an erratic regulatory environment for private-sector participation in public utilities, questionable asset valuations, sizeable liabilities held by the enterprises, litigation entanglements, and public opposition to the sale of strategic state assets.

Although there has been an increased drive to divest from loss-making public companies as a method of saving money, privatization revenues will not compensate for an appallingly low tax base in terms of relieving budgetary strains or an over-reliance on oil income.

Impact on the Nigerian economy

The report said, “Privatisation receipts will not compensate for an abysmally low tax take or an over-dependence on oil revenue. Because of this, we continue to expect upcoming budgets to include new taxes or increases to existing taxes, in particular value-added tax (VAT).”

“We continue to expect a VAT hike to 15%, a revenue measure that appears unavoidable considering persistent budget deficits. However, we continue to expect fiscal deficits in 2021-25, averaging 2.9% of GDP a year.”

 

Tags: Bureau of Public Enterprises (BPE)
Ubah Jeremiah Ifeanyi

Ubah Jeremiah Ifeanyi

For further inquiries about this article, contact: Email: Ifeanyi.ubah@nairametrics.com Twitter: @ubahjc Linkedln: Jeremiah Ubah

Related Posts

Here is a list of coal-dependent countries as of 2022
Commodities

Here is a list of coal-dependent countries as of 2022

April 15, 2023
Alex Okoh, ALSCON
Business

BPE to re-concession Lagos International Trade Fair Complex

April 11, 2023
Privatisation: FG approves the sale of NITEL/MTEL properties in Lagos
Business News

Privatisation: FG approves the sale of NITEL/MTEL properties in Lagos

February 25, 2023
Mainstream Energy will operate the $1.3 billion Zungeru Hydropower plant
Energy

Mainstream Energy will operate the $1.3 billion Zungeru Hydropower plant -BPE

February 23, 2023
TSA truncates payment of N1.8 billion severance package to former SAHCOL staff – BPE
Aviation

TSA truncates payment of N1.8 billion severance package to former SAHCOL staff – BPE

October 30, 2022
Six years after, BPE yet to remit N1.8bn redundancy packages to former SAHCOL staff
Aviation

Six years after, BPE yet to remit N1.8bn redundancy packages to former SAHCOL staff

October 7, 2022
Next Post
protesters, Nigeria secures landmark judgement, gets major relief in P&ID $10 billion dispute, Malabu Scandal: Netherland, Switzerland to send $200 million to Nigeria, FG asks UK court for more time to appeal $9.6 billion arbitration judgement, FG launches Central Data Management System

Nigeria, Cameroon working on standardizing border demarcations - FG

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • South-West doctors threaten strike over unfavorable allowances, issue 21-day ultimatum to FG
  • 15 things you don’t need to start a business in Nigeria 
  • NNPC, Akwa Ibom, GACN sign $3.5 billion gas agreement

Follow us on social media:

Recent News

Doctors

South-West doctors threaten strike over unfavorable allowances, issue 21-day ultimatum to FG

July 15, 2025
Small Business

15 things you don’t need to start a business in Nigeria 

July 15, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics