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Nigeria To Sell 10 State-Owned Companies To Fund 2018 Budget

There are reports that the Federal Government of Nigeria will offer 10 state-owned companies for sale to selected investors and the public in the fourth quarter to raise N289bn toward funding the 2018 budget.

Joe Anichebe, a director at the Bureau of Public Entreprises (BPE), was reported to have said that the sales will raise N289 billion for the funding of the 2018 budget.

Anichebe said preparations are in the final stages for the sales of the companies, which range from aviation to insurance.

Bloomberg reports that the first set of companies to be sold are Nicon Insurance Ltd. and Skyway Aviation Handling Co., which the director said will be sold “this month or early next month” through an initial public offering.

“Two of them, Nicon Insurance Limited and Skyway Aviation Handling Company, will be sold this month or early next month through an initial public offering,” he said.

President Muhammadu Buhari had signed a record N9.1tn budget into law in June, with a smaller fiscal deficit compared with the previous year, which the government seeks to fund from sources other than revenue from oil, its main export.

The Senior Special Assistant to the President on National Assembly Matters, Ita Enang, had said the greater part of the 2018 budget will be funded by loans.

“Mr President assented to the budget. The time we are now, we are working on the implementation of the budget. We are working on steps to raise fund for the budget. You know that the greater part of the budget is going to be funded by loans, because it is a deficit budget. And so we are working on modalities to make appropriate request before the legislature,” the adviser said.

“Some of the ministries have already advertised and commenced the procurement process pending which of the projects will finally come out of the budget and how much they will come out even the budget was finally approved.”

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