From some electricity assets owned by federal government already penciled down for sale the government is expecting to generate $219 million (about N90bn).
The assets are expected to be sold next year and would aid budgetary spending in 2022, according to the Minister of Finance, Zainab Ahmed on Wednesday, October 6, 2021.
The assets being earmarked for sale are the National Integrated Power Projects (NIPPs).
According to Reuters, the NIPPs is the government vehicle that owns several power generation plants in the country. In 2013, the FG sold off shares in the state electricity company to private buyers; a development which the medium noted has hardly succeeded in ending frequent power cuts in Nigeria.
Ahmed, who spoke after the weekly Federal Executive Council (FEC) meeting, said: “We’re projecting that in 2022 there will be more of these NIPPs that will be sold and from which we’ll realise this N90.3 billion.”
She added that that the move was due to a drop in government revenues; which she noted were not enough to fund capital projects like roads, rail and water. Consequently, she revealed that the FG had no choice than to continue borrowing.
The FG plans to borrow nearly $6 billion in external financing to help fund spending in 2021; in addition to aiding it partly finance an expected N6 trillion naira deficit.
“Nigeria’s borrowing has been of great concern and has elicited a lot of discussions. But if you look at the total size of the borrowing; it is still within healthy and sustainable limits,” Ahmed said.
She said total borrowing, which was equal to 23% of GDP as of July, was lower compared to its peers.