FG prioritises revenue over efficiency in asset sales – Analysts

Analysts have expressed concern over the Federal Government’s plan to sell selected state-owned assets and enterprises to private investors in 2026, warning that the initiative appears to prioritise revenue generation over structural reform.

The concerns follow the government’s recent announcement that it would begin divesting from certain public assets next year as part of efforts to deepen economic reforms and attract private capital.

Experts who spoke to Nairametrics argued that while asset sales are not inherently problematic, the framing of the policy suggests a stronger focus on plugging budget deficits rather than addressing inefficiencies, institutional weaknesses, and optimal asset utilisation.

What they are saying  

In an exclusive interview with Nairametrics, the founder and Chief Executive Officer of the Centre for the Promotion of Public Enterprise (CPPE), Dr. Muda Yusuf, said the logic behind asset sales is sound, but the presentation raises concerns.

• “There are quite a number of logics to support the sale of assets, but the way it is being presented to the press, it is as if the sale of assets is entirely because you want to fund the budget. I don’t think so. I think it’s also partly to address inefficiency issues with respect to some of the government ownership.  
• “More important is that we have thousands of government assets that are rotting away all over the place. So from that point of view, I think there’s nothing wrong, but the whole principle of selling assets is not only about generating revenue. It’s also about addressing inefficiencies, addressing issues of optimality in the use of assets.”  

Yusuf questioned the messaging around financing deficits through asset sales, arguing that the government should emphasise efficiency gains and value creation.

• “When you say you want to sell assets to finance deficits, why do you make that kind of statement? You don’t talk about inefficiency, you don’t talk about the value that those things will bring, which is the most important.”  

Similarly, university researcher Dr. Kelvin Madunagu warned that asset disposal should not be treated as a quick fiscal fix.

• “Asset disposal should never be treated as a quick cash fix alone. It works best when embedded in a broader reform programme — one that improves revenue collection, cuts wasteful spending, and strengthens public financial management. Otherwise, it risks becoming a one-off measure that does not solve underlying fiscal pressures.”  

More insight  

Yusuf maintained that selling assets to raise liquidity may be preferable to increased borrowing.

• “Just sell some of your assets, generate some cash and move on. Because doing that is better than borrowing.”  

However, he highlighted concerns about transparency and due process, citing past allegations of assets being sold to politically connected individuals at questionable valuations.

• “There is a transparency issue, like selling it to cronies, like not selling it for the right value. And even if you sell it, you go and waste the money again, you feel a loss to the people.”  

Madunagu also stressed the importance of labour protections in any divestment plan, including retraining programmes and severance guarantees.

He added that strategic sectors such as power, energy, transport, and security-linked industries may require alternative models.

• “For strategic assets — especially in power, energy, transport, and security-linked sectors — outright sale is not always the best model. Long-term concessions, public-private partnerships, or partial equity sales can preserve sovereign control while still attracting private capital.”  

What this means  

The Federal Government’s asset sale plan is expected to boost liquidity, reduce reliance on borrowing, and potentially improve efficiency in key sectors.

However, analysts warn of significant risks, including:

• Possible job losses
• Lack of transparency and allegations of undervaluation
• Reduced public control over critical infrastructure
• Long-term revenue losses
• Profit-driven service delivery that may reduce affordability

Experts argue that without strong governance, transparent valuation processes, and broader fiscal reforms, the exercise could fail to address Nigeria’s underlying structural and fiscal challenges.

What you should know

Nairametrics reported on February 10 that the Federal Government plans to commence the sale of selected state-owned assets in 2026.

Speaking on the sidelines of the AlUla Conference for Emerging Market Economies in Saudi Arabia, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the government is reviewing its portfolio of public assets to determine which ones will be offered for sale, as well as the timeline and structure of the divestment.

According to him, the proposed asset sales form part of the Tinubu administration’s broader strategy to optimise government-owned assets, improve efficiency, and position Nigeria as a more competitive destination for private investment.

FG prioritises revenue over efficiency in asset sales – Analysts   - Nairametrics