The federal government of Nigeria plans to privatize 19 state-controlled companies this year, according to information provided by S&P Capital IQ, which cites the Bureau of Public Enterprises. The operation would allow the state to mobilize up to 266.7 billion naira ($724.3 million) in net revenues.
Companies to be privatized include the Bank of Agriculture and Nigeria Reinsurance Company. The first was due for privatization last year and the second since 2018. The government planned to sell 40% of Bank of Agriculture, keep 20% while the rest of the shares is to be held by the central bank of Nigeria.
For the reinsurance company, a public offering or solicitation of an association of insurers can be expected. The way transactions would be carried out has not yet been presented but local media suggest that there will be a mix of capital openings via the stock exchange, as well as through private placements.
The measure will allow the government to control its budget deficit and maintain confidence in the financial sector, especially the banks and insurance companies that are exposed to the deficit because they hold bonds issued by the Treasury. The coronavirus crisis and the oil price slump have exacerbated the country's macroeconomic fragility.
Idriss Linge
• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...
• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...
• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...
• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 m...
• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....
• Ghana signs a deal with eLearning Africa to expand digital learning access across the country.• The partnership focuses on deploying modern digital...
Ghana launches the Oncology Nurse Leadership Program (ONLEP) to train specialized oncology nurses from seven African countries. The five-year...
Ivanhoe Mines signs deal covering 100% of Kamoa-Kakula smelter’s copper output. The smelter will process up to 500,000 tonnes annually, starting at...
African gas projects drive significant contracts for Asian shipbuilders, especially for Floating Liquefied Natural Gas (FLNG) units. South Korean...
Kolmanskop offers a haunting blend of lost wealth, colonial history, and the unstoppable force of nature. Located just a few kilometers inland from...
Located about 40 kilometers from Cape Town’s city center, Boulders Beach in Simon’s Town is one of the Cape Peninsula’s most iconic destinations. This...