Selling FG’s moribund assets to fund 2021 budget

The proposed plan by the Federal Government of Nigeria to sell-off its assets to fund the 2021 budget has drawn both applause and punches from Nigerians. Often, economists and national planners look at this type of move purely from the economic advantages to the nation, forgetting the political consequences, which are paramount as well. The […]

The proposed plan by the Federal Government of Nigeria to sell-off its assets to fund the 2021 budget has drawn both applause and punches from Nigerians. Often, economists and national planners look at this type of move purely from the economic advantages to the nation, forgetting the political consequences, which are paramount as well.

The selling of national assets is an issue that may boomerang politically against a government despite the economic advantages if the right steps are not taken.

Therefore, the federal government must design a strategy that addresses potential political and economic implications of the sales and educate the nation and its citizens on the economic imperative of selling off some of the assets.

The government must be ‘politically-correct’ on this issue, despite it being purely an economic matter. The Minister of Finance, Zainab Shamsuna Ahmed, was reported to have said that only moribund state assets would be sold. This is the first step in enlightening the citizens on the matter. But how would Zainab reach both the elite and the common man at the same time and convince them for full support? The minister and her team should launch a ‘heavy’ but short-time enlightenment campaign using all the channels of communication to inform Nigerians on the need and advantages of selling moribund national assets.

Another approach is to address the issue in collaboration with all relevant stakeholders.

On November 17th, 2020, the Senate Committee on Privatization  said the Senate  was not aware of any plan by the Bureau of Public Enterprises (BPE) to sell or concession some national properties to help fund the 2021 budget. So there is a need for synergy among all concerned.

Zayyad I. Muhammad writes from Jimeta, Adamawa State