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FG eyes N289bn for Skyway Aviation Handling Co, others for sale this year
Tony Chukwunyem with agency report
The Federal Government will offer 10 companies, including Nicon Insurance Ltd. and Skyway Aviation Handling Co for sale to selected investors and the public in the fourth quarter to raise N289 billion ($797 million) toward funding the 2018 budget, the Bureau of Public Enterprises (BPE) has said.
Bloomberg reported BPE Director, Joe Anichebe, as saying that preparations are in the final stages to begin the sale of the companies in industries that range from power through aviation to insurance.
According to the report, Anichebe disclosed that Nicon Insurance Ltd. and Skyway Aviation Handling Co. will be sold “this month or early next month” through an Initial Public Offering (IPO).
President Muhammadu Buhari signed a record N9.1 trillion budget into law in June, with a smaller fiscal deficit compared with the previous year, which the government seeks to fund from sources other than revenue from oil, its main export. The BPE had pledged to raise N306 billion to help finance the planned spending.
Senior Special Assistant to the President on National Assembly matters, Ita Enang, had said the greater part of the 2018 budget will be funded by loans.
“Mr President assented to the budget. The time we are now, we are working on the implementation of the budget. We are working on steps to raise fund for the budget. You know that the greater part of the budget is going to be funded by loans because it is a deficit budget. And so we are working on modalities to make appropriate request before the legislature,” the adviser said.
“Some of the ministries have already advertised and commenced the procurement process pending which of the projects will finally come out of the budget and how much they will come out even the budget was finally approved.”
The BPE last week sold a 21 per cent stake in the Nigeria Security Printing and Minting Company (NSPMC) to the Central Bank of Nigeria (CBN) for N17.3 billion.
Anichebe reportedly said that the agency is also reviewing previous sales and plans to revoke deals where buyers haven’t kept to their agreements.
