Nigeria wants to sell or lease some non-oil assets to fund the 2021 budget. This should not be surprising as I noted that by 2025, Nigeria will sell some university campuses to fund its bloated budgets.
The federal government has confirmed it plans to sell off some non-oil assets of the Federation to fund the 2021 budget. Finance Minister, Zainab Ahmed, made this known to stakeholders in a budget presentation made in Abuja this week.
The document of the presentation, titled, ‘Public Presentation of 2021 FGN Approved Budget – Breakdown and Highlights’ dated Jan. 12 was obtained by Premium Times.
[..]
Government’s recent move to borrow funds from unclaimed dividends and dormant bank accounts also underscores its search for sources to borrow from. Ms. Ahmed said that the government is targeting about N850 billion from unclaimed dividends and dormant bank deposits.
Government’s plan to sell and lease assets comes at a time when its habit of borrowing to fund the budget has been repeatedly condemned.
The document said the government intends to fund the budget by selling and concessioning government-owned properties and non-oil assets.
Although the document does not specify the assets the government is considering to sell, Premium Times report noted an earlier event indicating some of the assets.
The fact is this: 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.
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. So, at the end, everyone is doing siddon-look with no inventiveness.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
People, it is a big yard sale – and everything is discounted. Check here and see if some items will appeal to you.
Comment from LinkedIn Feed
Nigerian 2021 Budget (N13.58 trn) – Deficit, Financing and Critical Ratios
President Muhammadu Buhari had on December 31, 2020, signed the N13.58 trillion budget for the 2021 fiscal year – about N505 billion higher than the budget proposed in October, 2020.
In the approved budget, about N496.5 billion was approved for statutory transfers and N3.3 trillion was approved for debt services. The recurrent expenditure was put at N5.6 trillion with capital expenditure at N4.1 trillion and fiscal deficit at N5.2 trillion (5,196,007,992,292).
The overall budget deficit is N5.60trn for 2021, which represents 3.93% of the country’s GDP, and it’s to be financed mainly by borrowings:
-Domestic sources – N2.34trn
-Foreign sources – N2.34trn
-Multi-lateral/bi-lateral loan drowdowns- N709.69bn
-Privatisation proceeds – N205.15bn
With about N7.97 trillion is available to fund the 2021 budget as stated by the finance minister
Nigerian Government Confirms Plan to Sell/Lease National Assets to Fund 2021 Budget
---
Register for Tekedia Mini-MBA (Jun 3 - Sep 2, 2024), and join Prof Ndubuisi Ekekwe and our global faculty; click here.
You are riding a bicycle with punctured tyres, yet you don’t care to replace or patch the tyres, but you keep buying or borrowing pump to pump them as you ride…
As at 2015 and 2016, it was much easier for them to blame their incompetence and lack of foresight on the previous administration, now that art of blaming they perfected has become stale and unappealing; so the emperor is now completely naked.
This is the worst team to ever preside over the affairs of Nigeria, not just because they are the dumbest, being dumb is a common feature in our governance system, but in addition to that, they are both arrogant and unconscionable. They are irredeemable.
For over five years, their thought process is banal and predictable, no ingenuity, zero creativity; just look for where to borrow money, and if it’s difficult to find, just look for assets to sell or forgotten money to convert. We elected and appointed people to solve problems and get Nigeria working, unfortunately they have become the problem, needing to be solved.
Shamelessness stems from moral badness, and when you have it, you are never bothered about how crass or repugnant your thought process or behaviour is; this is what our current managers possess in abundance.
“You are riding a bicycle with punctured tyres, yet you don’t care to replace or patch the tyres, but you keep buying or borrowing pump to pump them as you ride…” – that is more than a line. A great analogy for the mess Nigeria has found itself.
A group myopic analogous rulers who knows nothing but borrow and squander then blame the previous administration… where we are where were were…so they have nothing to offer. The country is bankrupt… Doing the same allocation for over 50 years…no state will function that way! Decentralize power, let the states develope the ressources in their base… I am an advocate of federalism…but not what we have at the moment. What we need a symbiotic relationship not this parasitic system.
A group of myopic analogous rulers who knows nothing but borrow and squander then blame the previous administration… why we are where were were…so they have nothing to offer. The country is bankrupt… Doing the same allocation for over 50 years…no state will function that way! Decentralize power, let the states develope the ressources in their base… I am an advocate of federalism…but not what we have at the moment. What we need is a symbiotic relationship not this parasitic system.
Absolutely, can’t agree less than your views.