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Nigeria mulls property sale to raise funds

The disinvestment strategies for the properties are different. Some of them will be share sales, core investors or some of the sales will be concessions

The Nigerian government plans to divest 36 of its properties this year to raise funds for its 2021 budget. Furthermore, the properties are related to sectors such as industry, energy, communication and infrastructure.

The N13.58 trillion budget was signed by President Muhammadu Buhari last year. Some of the top-notch properties are the Abuja International Conference Centre, Abuja Environmental Protection Board (AEPB), Abuja Water Board, Nigerian Film, the Transmission Company of Nigeria (TCN), the Abuja International Conference Centre (ICC) and a few others. Some of the properties have been enlisted to be sold to willing buyers.

The disinvestment strategies for the properties are different. Some of them will be share sales, core investors or some of the sales will be concessions and full commercialisation sales.

It is reported that the core investor maybe firms or individuals, local or foreigner. The reports are produced by the Bureau of Public Enterprise (BPE). While the core investor sale is the transfer of at least 51 percent of the ownership. A concession is a form of a Public-Private Partnership (PPP).

The 36 projects are categorised under five departments. The energy sector comprises nine projects, followed by industries and communications with eight projects each and development institutions and natural resources with six projects.

The infrastructure and public-private partnership comprise four projects each and the rest nine projects are related to the post transaction management segment.

The pandemic has hampered global economies like any other segment. The Nigerian government want to keep the country resilient in terms of growth.

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