It, however, noted that money accrued from privatisation would not compensate for the low tax take plaguing the government or an over-dependence on oil revenue.
A report by the Economic Intelligence Unit has stated that the proposal by Nigeria's privatization agency, the Bureau of Public Enterprises, to privatize 36 state assets is likely to fail in its objective of generating revenue for the government.
It referred to a claim by the director-general of the BPE, Alex Okoh, who noted that since its creation in 1999, the bureau has generated more than N1trn from the sale, commercialisation and concession of 234 public assets but pointed out that such transactions occurred in the early years of Nigeria's privatisation programme as only a little progress had been made in the past decade.
“The objectives of privatisation are to generate cash for the government and in the process reduce operational inefficiencies and improve productivity through private investment. Such a large wave of privatisations is a testament to significant shortfalls in oil and non-oil earnings. “But many of the transactions occurred in the early years of Nigeria's privatisation programme. Little progress has been made in the past decade. For the three years before 2020, the Federal Ministry of Finance reported zero privatisation proceeds even though revenue from sales had been expected in each year. Policymakers, who in 2019 announced a plan to reduce government equity in existing joint ventures with multinational oil companies to 40% from an average of 57.
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