Budget Deficit: Buhari Govt May Sell Tafawa Balewa Square, Power Plants, Others

The Federal Government is considering selling or concessioning the Tafawa Balewa Square in Lagos, four National Integrated Power Projects and other assets to fund the 2023 budget deficit of N10.7tn.

Sources at the Ministry of Finance, Budget and National Planning told The PUNCH that the government wants to dispose the assets to raise money to take care of some projects in the 2023 budget.

One of the sources said more than 25 of such projects will be turned into active assets that will be generating money in some ways to they overnment.

The source said the government is also planning to sell or lease the National Integrated Power Projects in Olorunsogo, Calabar II, Benin (located at Ihorbor), Omotosho II and Geregu II plants.

He added that all the hydro power plants across the country, including Oyan, Lower Usuma, Katsina-Ala and Giri plants will be sold or concessioned.

The source pointed out that some of the assets will be offered to investors for equity while others will be totally sold to reduce waste.

Another source said the government is planning to generate revenue from Calabar and Kano free zones as well as Abuja Water Board, Aluminium Smelter Company of Nigeria, National Film Corporation, National Theatre and Lagos International Trade Fair.

He disclosed that the government is also planning to relinquish the ownership of some of the basin authorities and hand them over to the private sector to manage.

Some of the government ministries such as the postal service will be concessioned or entirely sold to the private sector to enable them to compete effectively with other privately- managed logistics firms.

FG Plans To List NNPC On Stock Market

One of the sources said that the Federal Government was seeking ways of enhancing the value of the Nigerian National Petroleum Corporation by listing it in the stock market to raise capital.

“This government may not benefit from the sale of these assets. It is a little bit late but the plan is to ensure we make all those dead assets alive. Let us cut wastes at least,” he said.

He added that the government will extend its tentacles to hotels and landed properties, especially those that could be described as dead capital, to raise money.

He, however, said the government was also keen to stop payment of salaries in those government-owned assets to cut wastes and support the economy.

Naija News reports that the Federal Government has mulled the sale of assets since 2016 but several issues such as  vested interests, legal issues, political interference, protests and an inability to ascertain its proper value have halted the ambition.