Nigeria Opens A Massive Yard Sale – Refineries, TCN, etc going

Nigeria Opens A Massive Yard Sale – Refineries, TCN, etc going

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

debt service ratio

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2 thoughts on “Nigeria Opens A Massive Yard Sale – Refineries, TCN, etc going

  1. If we have assets for sale, why did we go on a borrowing extravaganza to build roads and railways, is it better to be servicing debts? That’s if the total assets on sale even worth the cost of 5Km of road.

    When Atiku said he would sell the refineries including NNPC, if he won, the ruling cabal made it look like it was a taboo to say such, what has changed? That was how they called petrol subsidy payment a scam, until they got to power, then they ended up paying more than subsidy.

    Now we pay more for petrol, pay more on VAT, the FIRS said it’s hitting targets like never before, corruption fights recovering cash and assets, Customs announcing nice numbers; so why are we getting broke my the minutes? We will sell to fund 2021 budget and by 2022, what are we going to sell, plots of land or one of the rivers?

    We know that the way the country is structured and managed is grossly inefficient and has no chance of ever becoming good enough, why do we keep repeating failures? We have massive debt to service, yet we are broke and we still don’t think it’s good to shake up the architecture of the country; our level of deception is legendary.

    The current team running the country is far from being intelligent, they are not even bothered.

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  2. Nigeria leadership question has been consistent but those in leadership have been on a constant road of ensuring that the right things are not done. The guyz at the helms of affairs now lack capacity to thinker a way out of the huge mess we are faced with and are not doing anything to make it easy for the people that can bring us out of the woods take charge and do the needful. it will remain a sorry gory tale until we all come to our senses and channel a course for ourselves…the deception has actually been legendary.

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