PUNCH
The Federal Government may sell stakes in about 20 state-run companies to raise funds and improve governance in the entities.
This is according to a Bloomberg report. The Nigerian National Petroleum Corporation is among the firms the government may sell a stake in, according to the chief executive officer at the Ministry of Finance Incorporated, Armstrong Takang.
He stated that the agency is considering options including strategic sales and initial public offerings and aims to implement the plan within 18 months.
He noted that some of the entities need the private sector to take controlling shares and the major consideration for the government is to create value rather than retain control.
He said, “It is better for us to own 49 per cent of a high-performing entity than 90% of an entity that is underperforming.”
These sales may coincide with President Bola Tinubu’s plan to reform the country’s economy. Takang stated that the agency is in the process of appointing consultants including valuers, financial advisers, lawyers, bankers, and others to handle different aspects of the transactions.
