Nigeria is selling 36 assets to increase revenue amid declining oil revenues

(Bloomberg) – The privatization agency in Africa’s largest economy plans to sell or manage 36 government assets by private investors to boost government revenues, which have come under pressure from lower oil revenues.

Two free economic zones in the northern city of Kano and Calabar in the oil region and power generation facilities are among the assets for sale, Alex Okoh, director general of the Bureau of Public Enterprises, said Tuesday.

The power plants have the capacity to add 3,300 megawatts to the country’s electricity generation, while the economic zones will increase export revenues by about $ 2 billion over the next five to seven years, Okoh said.

The oil revenues of Africa’s largest crude oil producer were 49.5% below target in the first five months to May, the Ministry of Finance, Budget and Planning said in a report on Tuesday. Revenues outside the oil sector also fell 24.9% below expectations, it said. Privatization will help attract capital to appreciate the assets and raise cash to aid the government in the face of falling budget revenues.

Moody’s Investors Service said in November that Africa’s most populous country will have to invest at least $ 3 trillion over 30 years to fill an existing infrastructure gap.

The agency is working with the World Bank to develop about 100 projects to make them attractive to private investors, said Amaechi Aloke, director of infrastructure and public-private partnerships at BPE.

Similarly, the Nigerian Sovereign Investment Authority plans to set up 20 health centers to deepen the medical infrastructure through a partnership with co-investors, CEO Uche Orji said at the conference.

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