Nigeria has a huge infrastructural deficit and requires up to $3 trillion over the next 30 years to bridge this gap. Putting this into perspective, the Federal government would need to spend the entire 2021 budget of ₦13.58 trillion continuously over the next century on capital expenditure to meet the target. The fact that less than ₦3 trillion was appropriated for capital expenditure reflects the urgency to increase infrastructure spending. Sadly, the dire fiscal position of the Federal Government of Nigeria (FGN) has left little room for investments in infrastructure, a vital expenditure for an emerging economy like Nigeria. With a dwindling revenue base projected at ₦8 trillion and a widening budget deficit of over ₦6 trillion, according to the 2021 budget, conversations around optimizing the country’s underutilized assets are germane.
Over the next two years (between January 2021 and November 2022), the Nigerian government intends to sell or concession no fewer than 36 of its assets to raise funds to finance the 2021 budget and drive infrastructure development across the country. Different models have been deployed by the Nigerian government in the past, to resuscitate non-performing and under-performing assets, either through outright sales to private investors or some form of public-private partnerships (PPPs). While some projects have been successful, others have not been…
