Nigeria is set to embark on a fresh round of public asset sales in 2026, with the federal government identifying 91 state-owned holdings for potential privatization, Finance Minister Wale Edun announced. The move forms part of President Bola Tinubu’s broader fiscal reform agenda, aimed at consolidating public finances, attracting private investment, and improving the efficiency of publicly owned enterprises.
Speaking on the sidelines of the AlUla Conference for Emerging Market Economies in Saudi Arabia, Edun said the government is finalizing the asset list, structuring the transactions, and determining the timeline for the offerings. “The plan is to offer some assets in 2026… What we have put in place has made Nigeria very competitive in terms of economic conditions and attractive in terms of incentives for investors,” he stated.
The initiative is part of a wider reform program that has included foreign exchange liberalization, the removal of fuel subsidies, and efforts to strengthen revenue mobilization. Analysts see the forthcoming asset sales as the next phase in optimizing publicly held enterprises through sales, concessions, or public-private partnerships (PPPs).
Assets Across Key Sectors
The Bureau of Public Enterprises (BPE) has previously identified 91 federal assets under the Public Enterprises Act that could be privatized or commercialized. These holdings span multiple sectors, including oil and gas, power, agriculture, aviation, and other public enterprises. Of the total, 16 assets are within the oil and gas sector, including refineries and depots. Electricity distribution companies and infrastructure tied to the Nigerian National Petroleum Company Ltd (NNPC) are also expected to feature among the assets on offer.
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However, the government has yet to disclose the specific names of the assets or their estimated valuations. Likewise, details on how proceeds will be used remain undecided, though options could include debt reduction, infrastructure investment, or strengthening reserves. Officials are also exploring whether some assets, particularly in the power sector, could be structured as initial public offerings (IPOs) to attract a wider pool of investors.
Challenges and Lessons from Past Efforts
Privatization and asset concessioning in Nigeria have a long history, marked by mixed outcomes. Previous initiatives, especially in telecommunications and power, faced regulatory disputes, valuation disagreements, and investor grievances that slowed progress. To avoid similar pitfalls, analysts stress the importance of clear governance structures, transparent valuation processes, and robust regulatory oversight.
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The forthcoming transactions will involve the National Council on Privatization and the BPE, with industry-specific regulatory clearance required for each deal. Transparency and adherence to international best practices are expected to play a critical role in building investor confidence and ensuring successful completion of the sales.
Investor Confidence and Fiscal Pressures
Recent reforms have improved Nigeria’s attractiveness to investors, as foreign and domestic capital increasingly seek exposure to Africa’s largest economy. The government hopes the asset sales will accelerate private-sector participation, drive economic efficiency, and generate resources to support ongoing fiscal consolidation.
The renewed push for privatization also comes amid persistent economic pressures, including inflationary constraints, currency volatility, and mounting public debt. Analysts say the timing of the asset sales, if executed with transparency and credibility, could provide a much-needed boost to public finances while creating opportunities for private sector-led growth.
Next Steps
Authorities have not yet confirmed the specific timeline or sequence of transactions, nor the mechanisms for valuation and proceeds allocation. These details are expected once the internal review concludes, after which the government will formally announce the first series of offerings.
If successfully implemented, Nigeria’s 2026 asset sale program could mark one of the most ambitious privatization drives in recent memory, covering key sectors and unlocking significant economic potential. However, the initiative’s success will depend heavily on careful structuring, investor confidence, and lessons learned from previous rounds of asset sales.
