Tinubu’s Government Targets $17 Billion From Sale of TBS, Refineries, Other National Assets, List Emerges

Aug 23, 2023 | Entertainment, News


  • The global investment banking giant JP Morgan said Nigeria is looking to make $17 billion from asset sale
  • The report said the government is in the final stages of identifying dead or idle assets for sale
  • It also reported that the presidential council has recommended that the country sell its stakes in oil and gas firms

According to JP Morgan, the global investment bank, Nigeria is set to unlock $17 billion from asset sales to relieve the pressure on Nigeria’s Forex liquidity and external reserves.

JP Morgan, which put Nigeria’s external reserves at $3 billion against the $18 billion figure provided by the Central Bank of Nigeria (CBN), said the country is at the initial stages of identifying assets for sale that may offer some medium-term cash palliative to the country.

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Tinubu, national assets
President Bola Tinubu’s government is making moves to sell national assets.
Credit: Legit.ng
Source: Getty Images

Tinubu’s cabinet lists national assets for sale

The report said President Tinubu’s advisory council has recommended that the government sell its stakes in most joint venture oil and gas assets, which is expected to yield $17 billion to the country’s coffers.

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“The authorities are in the initial stages of identifying assets for sale, which may provide some medium-term relief,” JP Morgan said.

The country reportedly has N180 trillion trapped in dead or idle government assets as it intensifies its drive for cash.

Over 70 assets captured

Leadership reports that over 70 entities have been captured in a national asset register which aims to identify the country’s dead and idle assets.

The Ministry of Finance (MOFI) listed the assets and said it would help the country to unlock cash for the government.

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JP Morgan stated that the recently procured $3 billion loan by the Nigerian National Petroleum Company Limited (NNPC) could help ease the FX liquidity squeeze in the country.

JP Morgan said:

“We expect NNPC to sell the dollars to CBN and remit the naira proceeds to the government as upfront payments for oil revenues and taxes,” JP Morgan noted.

“That being said, the large external financing needs of the private sector will sustain FX pressure,” it concluded.

List of assets for sale

In a previous report by Punch, the country had considered the sale of Tafawa Balewa Square in Lagos as well as all the National Integrated Power Projects in Olorunsogo, Calabar II, Benin (located at Ihorbor), Omotosho II, and Geregu II plants.

The federal government also planned to sell or concession all the hydropower plants across the country, including Oyan, Lower Usuma, Katsina-Ala, and Giri plants.

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The report listed 25 federal government-owned assets spread across the country.

Premium Times listed national assets such as NIPOST, Nigerian Hotels, and Lagos International Trade Fair.

A source said the Nigerian government is also considering selling its assets in NNPC when the company goes public very soon.

Naira in trouble?: JP Morgan reveals Nigeria’s Forex reserve is $3bn, far lower than CBN’s figure

Earlier, Legit.ng reported that Global financial service firm JP Morgan has revealed that Nigeria’s net forex reserve has declined to around $3.7 billion.

The financial institution disclosed this in its latest report on Nigeria titled “Nigeria: Reform pause rather than fatigue.”

The FX reserves figure quoted by JP Morgan is much lower than the Central Bank of Nigeria’s reported figures of about $33.82 billion published on its website.

Source: Legit.ng





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