There is a massive yard sale in Nigeria now. Yes, Nigeria plans to sell or concession many properties to raise funds, largely to finance the 2021 budget. These properties are from energy, industries, communication and infrastructural sectors, and are expected to be concessioned or sold between now and Nov 2022, Premium Times reports: “Top among these properties are the Abuja Environmental Protection Board (AEPB), the Abuja International Conference Centre (ICC), some unnamed refineries, the Transmission Company of Nigeria (TCN), Abuja Water Board, Nigerian Film Corporation, among others.”
As a citizen, I am helping to advertise the yard sale! Pick, pay, and carry-home. Look at the numbers, we invest $100 million, and we look for buyers at $10 million. What a nation!
People, Nigeria is a poorly run entity and I am not saying this because I have better ideas. I am simply reporting a statement of facts. When the cost of your capital is 60% of your revenue, your future as an entity is not certain. The uncertainty brings a vicious circle where you have to sell everything on the way to service debts, and that triggers more paralyses.
Nigeria can sell everything, collect pension funds, borrow dividend funds, pick dormant bank balances, tax remittance, etc, but the outlook will not change until it reforms its economic architecture. We have no incentives for intra-competition across state lines and we do not reward hard work in the ways we compensate states: “Twenty-six Nigerian states recorded zero foreign investment in the whole of 2020”. People, it is a big yard sale – and everything is discounted. Go ahead.
Twenty-six Nigerian states recorded zero foreign investment in the whole of 2020, figures released by the National Bureau of Statistics show.
The report on capital importation into the country, compiled by the Central Bank of Nigeria, was released on Friday by the NBS.
It captures the total Foreign Direct Investment (FDI), portfolio investment and other types of investments into the country in a year the global economy suffered a terrible battering as a result of the coronavirus pandemic.
The total value of capital inflow for the year fell to $9.7 billion, from $24 billion in 2019, representing a decline of 59.7 per cent. It was the lowest in at least four years.
More foreign capital inflows came through “other investments”, followed by FDI, and Portfolio Investment, the report