FG Set to Sell Stakes in NNPC and 19 Other Entities

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The Federal Government is set to sell its stakes in about 20 state-run companies in order to raise funds and improve governance in the entities.

According to the Chief Executive Officer at the Ministry of Finance Incorporated, Armstrong Takang, the Nigerian National Petroleum Corporation (NNPC) is among the firms the government may sell a stake in.

He said that the agency is considering options including strategic sales and initial public offerings and plans to implement this within 18 months.

He noted that some of the entities need the private sector to take over most of its shares and the major consideration for the government is to create value rather than retain control.

He said, “It is better for us to own 49 percent of a high-performing entity than 90% of an entity that is underperforming.”

Sources said the assets included Tafawa Balewa Square in Lagos, the National Integrated Power Projects in Olorunsogo, Calabar II, Benin (located at Ihorbor), Omotosho II, Geregu II plants, all the hydropower plants across the country, including Oyan, Lower Usuma, Katsina-Ala, and Giri plants.

The sources also noted that more than 25 of such projects will be turned into active assets that will generate money to the Federal Government. A concern expressed however, is the reports given about the President using this same tactic to own a lot of government properties in Lagos State.

Right from the pre-election campaigns, there has been report that President Bola Tinubu, during his governorship tenure in Lagos State, sold off most government owned properties/companies under the claim of generating funds and increasing value; just to be discovered later that those properties/companies were bought by him. That became the reason He is called the owner of Lagos.

Proposing the same thing now, is raising concerns among the citizenry that the President may have just began the same thing he did with Lagos. Especially considering the fact that he neither affirmed nor denied the previous allegation.

 

 

 

 

 

 

 

 

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