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By Chinwendu Obienyi
Economic analysts are sharply divided over plans by Nigeria to begin selling selected government-owned assets from 2026, with supporters describing the move as fiscally pragmatic and critics warning it could mortgage the country’s future revenue base.
The planned divestments, disclosed by Finance Minister Wale Edun, form part of broader economic reforms under President Bola Tinubu aimed at reducing the country’s widening fiscal deficit and attracting private sector investment.
Nigeria has budgeted about N58 trillion in spending against projected revenues of N33.27 trillion, leaving an estimated deficit of roughly N25 trillion. The government believes asset sales could help narrow the funding gap while strengthening private sector participation in key sectors of the economy.
But analysts remain split on whether the strategy represents a sustainable fiscal solution or a temporary measure that fails to address deeper structural challenges.
Delivering his insights during an SBM Intelligence Podcast, former Head of Research and Policy Analysis at BudgIT Nigeria, Samuel Atiku, expressed strong reservations about the proposal, arguing that Nigeria’s fiscal problems stem primarily from unrealistic revenue projections and excessive spending.
According to Atiku, successive governments have expanded public expenditure without building sustainable revenue streams, leading to increased borrowing and inflationary pressures. He noted that Nigeria’s budget size has grown significantly over the years without corresponding improvements in government income.
He warned that selling public assets could provide short-term liquidity but may weaken the country’s long-term financial position, particularly if proceeds are used to fund recurrent expenditure rather than productivity-enhancing investments.
The question is what happens after these assets are sold,” he said, cautioning that disposing of strategic national assets without improving fiscal discipline could erode future revenue opportunities. He also raised concerns about transparency, accountability, and whether asset sales would deliver value to citizens.
Atiku stressed that the government should first demonstrate measurable benefits from recent reforms, including subsidy removal, before considering divestment of state-owned enterprises.
In contrast, Chief Executive Officcer, Centre for the Promotion of Public Enterprise (CPPE), Muda Yusuf said asset sales could be justified, particularly where government ownership has contributed to inefficiency and underutilisation.
Yusuf argued that Nigeria has numerous public assets that have deteriorated due to poor management and limited funding. According to him, transferring such assets to private operators could improve efficiency, productivity, and overall economic performance.
He maintained that selling assets to generate liquidity may be preferable to increasing public debt, which continues to exert pressure on government finances. However, Yusuf cautioned against framing asset sales purely as a tool for deficit financing, urging authorities to emphasise value creation and operational efficiency.
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.” 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.”
The debate also extends to potential divestment in major state-owned enterprises, including the Nigerian National Petroleum Company (NNPC) Limited, which some analysts consider a critical national revenue source.
As the government finalises its asset sale framework, experts say the ultimate impact will depend on how transparently the process is executed and whether proceeds are channelled into investments that expand Nigeria’s revenue base.
For now, analysts agree on one point: without deeper fiscal reforms, asset sales alone may not be enough to resolve Nigeria’s long-standing budgetary challenges.
