FG Asset Sales in 2026: Revenue Generation Overshadows Efficiency, Analysts Warn
Analysts have raised concerns over the Federal Government’s (FG) plan to sell selected state-owned assets and enterprises to private investors in 2026, warning that the initiative seems to prioritise short-term revenue generation over structural reforms and efficiency improvements. The government recently announced its intention to divest from certain public assets as part of broader economic reforms aimed at attracting private capital.
While acknowledging the logic behind selling government assets, experts argue that the framing of the initiative emphasizes plugging budget gaps rather than addressing inefficiencies or optimising asset use. Dr. Muda Yusuf, founder and CEO of the Centre for the Promotion of Public Enterprise (CPPE), highlighted that “the sale of assets should not be portrayed as purely a means to fund the budget. It’s also about addressing inefficiencies and making better use of government resources.”
University researcher Dr. Kelvin Madunagu warned that treating asset sales as a quick fiscal solution could backfire. According to him, “Asset disposal works best when part of a broader reform programme — improving revenue collection, cutting wasteful spending, and strengthening public financial management. Otherwise, it risks being a one-off measure that doesn’t resolve underlying fiscal pressures.” Analysts also raised concerns about transparency, fair valuations, and potential favouritism in sales to politically connected individuals.
Experts emphasised that certain strategic sectors, including power, energy, transport, and security-linked industries, may not be suitable for outright sales. Alternative models, such as long-term concessions, public-private partnerships, or partial equity sales, could help preserve government control while still attracting private investment. Labour protections, including retraining programmes and severance packages, were also highlighted as critical to protecting employees affected by divestment.
The FG’s asset sale plan is expected to boost liquidity, reduce borrowing, and potentially enhance efficiency in key sectors. However, analysts caution that without strong governance, transparent valuation processes, and broader fiscal reforms, the initiative may fail to address Nigeria’s deeper structural and fiscal challenges, possibly leading to job losses, long-term revenue reductions, and profit-driven service delivery that could reduce affordability.
source: nairametrics