Nigeria: $16.4 Billion to Be Generated Through Asset Sales

The government of Nigeria plans to sell some assets over the next four years to generate as much as $16.4 billion to reduce the burden on the public budget, a Budget Ministry document showed.

The sales will help to tackle inefficiencies and stem “corruption in public enterprises,” according to the document obtained by the Bloomberg, which outlines the nation’s plans for economic recovery from 2017 to 2020. Also, the document is to be unveiled by President Muhammadu Buhari on an unspecified date this month. However, critical assets to be sold was not mentioned in the document, but speculations are pointing to the country’s under-performing refineries and other public assets considered as such.

This action was also noted inevitable in order to meet the revenue gap in the nation’s 2017 budget expenditure, due to decline revenue from the export of crude oil sales by the government, one which was acclaimed as the causes of economic downturn. The Africa’s largest economy contracted 1.5 percent in 2016, while the government proposed a 20 percent increase in this year’s budget to stimulate the economy and help gross domestic product expand by an average of 4.7 percent annually over four years and reach 7 percent in 2020.

The document also shown that the government targets 2.5 million barrels a day by 2020, one which explains the recent dialogue and consultation with relevant stakeholders in the oil rich Niger Delta.

 

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