Nigeria’s Asset Divestment Plan Should Focus on Efficiency, Not Just Revenue, Say Experts
Revenue-First Messaging on Asset Sales Sparks Concern Among Analysts
Analysts have raised concerns about the Federal Government of Nigeria’s plan to sell selected state-owned assets and enterprises in 2026, arguing that the initiative appears to emphasise short-term revenue generation for the budget rather than comprehensive structural reform and efficiency improvements.
The government’s announcement that it will begin divesting certain public assets as part of broader economic reforms has prompted debate among economists and public policy experts about the framing and strategic intent of the programme. While asset sales can be a viable tool for raising funds and reducing the fiscal burden, observers caution that framing the policy principally as a deficit-financing measure could undermine broader goals such as improving institutional performance, operational optimisation and value realisation.
Revenue-Centric Messaging Raises Alarm
According to analysts interviewed by Nairametrics, the government’s public messaging around asset sales particularly suggestions that the exercise is intended to plug budget deficits may risk overshadowing efficiency-driven reform objectives. Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Public Enterprise (CPPE), said the logic behind asset sale as a fiscal tool is sound in principle, but that the emphasis in communication suggests a prioritisation of revenue over structural value creation.
“It is as if the sale of assets is entirely because you want to fund the budget,” he said, noting that optimal use of government-owned infrastructure should be a core theme in any divestment strategy. Analysts argue that revenue should not be the sole narrative focus, but part of a broader reform agenda that improves efficiency, governance and institutional performance.
Risks of Revenue-Driven Approach
Dr Kelvin Madunagu, a university researcher cited in the report, warned that treating asset disposal as a quick fiscal fix divorced from wider fiscal and public financial management reforms could limit the impact of the deregulatory effort. He said that without accompanying improvements in revenue collection, expenditure control, and public financial management structures, asset sales risk becoming episodic rather than transformational.
Analysts also flagged potential pitfalls including:
Transparency concerns if assets are not competitively valued or sold at fair market prices, which could erode public trust.
Job risks and social impacts if divestments lead to restructuring without adequate transition planning.
Loss of public control over strategic infrastructure if privatisation is not linked explicitly to long-term value creation and accountability.
These concerns align with broader fiscal debates in Nigeria, where government efforts to broaden the revenue base and reduce reliance on borrowing have gained traction but remain contested in terms of design and implementation. For example, some economists have urged the federal government to consider alternatives such as asset securitisation a model that can unlock value without full disposal of ownership particularly given the projected budget deficit projected to exceed ₦25 trillion.
Asset Sales in the Context of Broader Fiscal Challenges
The planned asset sale initiative forms part of the Federal Government’s attempt to optimise Nigeria’s public sector asset portfolio and attract private capital. Finance authorities, including the Federal Ministry of Finance and Coordinating Minister of the Economy, have stated that reviewing the government’s asset base is intended to improve efficiency, reduce fiscal pressure and position Nigeria as a more competitive destination for investment.
However, analysts caution that without clear emphasis on structural reform goals including improved governance of remaining public assets and deeper institutional reforms the immediate budgetary benefit may come at the expense of long-term efficiency and economic performance.
Aligning Messaging and Policy Objectives
Analysts argue that while asset sales can play a role in bolstering government revenues and encouraging private sector participation, the strategic communication and implementation of such programmes should prioritise efficiency, value creation and governance improvements not just headline revenue targets.
For policymakers, striking a balance between raising funds for pressing budget needs and ensuring transparent, efficient, and long-term value-driven divestment processes will be critical to the success of Nigeria’s asset sale strategy in 2026 and beyond
