Reports: FG Set To Sell 10 State-owned Assets To Fund 2018 Budget - EazyFeeds

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Sunday 28 October 2018

Reports: FG Set To Sell 10 State-owned Assets To Fund 2018 Budget

Due to huge cost of servicing new loans, FG to sell assets to fund the 2018 budget.

The 10 ailing key national assets, two of which must be sold this month (Nicon Insurance Limited and Skyway Aviation Handling Co), the government is expected to earn the sum of $797m, that is N289b.

The Ajaokuta Steel Complex is also penciled for disposal.

Other assets for sale:
Afam Power Plant;
Concessioning of Terminal “B,” Warri Old Port; restructuring and recapitalisation of the Bank of Agriculture (BOA); partial commercialisation of the Nigerian Postal Services (NIPOST)

and the restructuring/ commercialisation of six River Basin Development Authorities (RBDAs); partial commercialisation of three selected national parks and re-privatisation of Yola Disco etc.

In the 2018 Appropriation Act, the sum of N350b is expected from privatisation proceeds, and BPE boss, Okoh had advised the FG to stop taking loans because of their high cost of service, and instead dispose of some obsolete assets to raise money to fund 2018 budget.

The capital component for which vital assets are being sold to part finance, in addition to funds from borrowings in the local and international markets is N3. 133t, out of the N 9.12t the 2018 fiscal plan, which implementation began mid – June this year.

Source: Deji Adeyanju Via twitter

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