The Nigerian government has finalized plans to list prominent national assets, including Eleme Petrochemicals, Nigeria Reinsurance Corporation, NICON Insurance, and Nigerian Machine Tools, on the capital market. This move, scheduled for the first quarter of 2024, aligns with the government’s economic liberalization approach and aims to generate revenue to partially fund the 2024 national budget.
Key Points:
- National assets like Eleme Petrochemicals and NICON Insurance targeted for listing in the capital market.
- The government anticipates raising N298.4 billion from the sale of selected national assets, surpassing the revenue target.
- Privatized assets, previously mismanaged by private investors, to be co-owned with private investors through the special purpose investment vehicle.
- Focus on economic liberalization principles to attract private sector participation and enhance job and wealth creation.
- BPE emphasizes the need to tap into the economic potential of the private sector and reduce reliance on borrowing.
- President Bola Tinubu engages foreign investors, signaling a commitment to economic liberalization and attracting private investments.
Conclusion: The decision to list key national assets on the capital market reflects the Nigerian government’s commitment to economic liberalization, private sector engagement, and revenue generation. By co-owning these assets with private investors, the government aims to improve management, revive previously mismanaged entities, and foster economic growth. The strategy aligns with the administration’s goal to reduce bureaucracy and inefficiency, emphasizing the importance of private-sector financing to address the country’s infrastructure deficit and support the national budget.
