Keypoints:
- Federal government plans first wave of divestments in 2026
- Up to ninety-one state holdings under review for sale or concession
- Proceeds aimed at shoring up revenues and cutting borrowing
NIGERIA is preparing to begin selling selected state-owned assets this year in what officials describe as the most ambitious privatisation push since the mid-2010s, a strategy intended to unlock private capital, reduce fiscal strain and reshape how the federal government participates in key sectors.
The plan, outlined by Finance Minister Wale Edun, places asset divestment at the heart of President Bola Tinubu’s broader reform agenda — alongside fuel subsidy removal, a more flexible foreign exchange regime and sweeping tax changes — as Abuja seeks faster growth, deeper markets and a leaner state.
Reform context and political timing
Since taking office in May 2023, Tinubu has pursued reforms that initially drove inflation higher but gradually stabilised macroeconomic conditions. Officials now argue that the country is better positioned to attract long-term investors than at any point in the past decade.
Edun told international delegates that the government has spent the past year cleaning up balance sheets, clarifying regulations and preparing transaction frameworks so that asset sales can proceed smoothly in 2026 rather than being rushed or politically contested.
Privatisation has long been a sensitive issue in Nigeria. Labour unions and civil society groups often warn that poorly structured sales can enrich elites while weakening public services. The finance minister insists this round will prioritise transparency, competitive bidding and measurable public benefits.
What could be sold
While Abuja has not released a definitive list, planning documents seen by analysts suggest that as many as ninety-one federal holdings are being reviewed for either outright sale, partial equity stakes or long-term concessions.
Potential candidates span energy, transport, logistics, agriculture, aviation and manufacturing. Some assets may be sold to strategic investors, while others could be opened to local pension funds or listed on the Nigerian Exchange.
Energy assets are expected to feature prominently. Several government-linked facilities — including storage depots and legacy refinery infrastructure — have struggled with efficiency for years. Officials believe private operators could modernise these assets more quickly than the state.
The Nigerian National Petroleum Company remains a focal point of debate. Rather than a full privatisation, policymakers are leaning towards structured public-private partnerships or minority equity sales that preserve government influence while injecting new capital and management expertise.
Lessons from the past
Nigeria’s previous privatisation drives produced mixed results. The sale of power generation companies in 2013 expanded capacity in some regions but was undermined by weak distribution networks and regulatory disputes. Telecommunications privatisation, by contrast, is widely viewed as a success that transformed connectivity across the country.
This history shapes the current approach. Transaction advisers are being instructed to stress operational performance, clear regulatory frameworks and dispute resolution mechanisms — rather than simply maximising sale prices.
A senior treasury official, speaking privately, said the government would rather delay a transaction than proceed with a deal that could later unravel in court or damage investor confidence.
Fiscal pressures and growth ambitions
Nigeria faces a tight fiscal outlook. Debt servicing costs consume a large share of government revenue, while social spending demands continue to rise. Asset sales are seen as a way to raise funds without piling on new borrowing.
Proceeds could help narrow the budget deficit, stabilise the naira and rebuild foreign reserves. Some lawmakers have also urged that part of the windfall be channelled into infrastructure — roads, power transmission and digital connectivity — to crowd in further investment.
International institutions project growth of just over four percent for 2026, but officials believe that well-executed privatisation could push that figure higher by stimulating productivity and job creation in underperforming sectors.
Investor appetite
Global funds have shown renewed interest in Nigeria as currency reforms reduce distortions and capital controls ease. Yet investors remain cautious, citing policy unpredictability and security risks in parts of the country.
To counter this, Abuja is designing guarantees, risk-sharing mechanisms and clearer rules for profit repatriation. The government also hopes that marquee deals in 2026 will set a positive tone for subsequent transactions.
Regional investors from West Africa, as well as Middle Eastern sovereign funds, have reportedly expressed preliminary interest in select assets, particularly in logistics and energy.
What comes next
The first tranche of sales is expected in the second half of 2026, once final valuations and legal structures are completed. A formal schedule has yet to be published.
Parliament will likely scrutinise major deals, especially those involving strategic assets. Civil society groups are already calling for public hearings and full disclosure of contracts.
For Tinubu, success would mean more than revenue. It would signal that Nigeria can move decisively from a state-heavy economic model to one driven by competitive markets — a shift that has defined his presidency so far.
