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Nigeria expects $219 million from selling state power assets By Reuters

© Reuters. FILE PHOTO – Zainab Ahmad, Nigeria’s Finance Minister, attends the 2019 IMF/World Bank Annual Spring Meetings in Washington (U.S.A.) April 13, 2019. REUTERS/James Lawler Duggan/File Photo

ABUJA, Reuters – Nigeria is expected to generate 90 billion naira (or $219 million) by selling mostly government-owned energy assets. The proceeds will be used to finance spending in 2022.

National Integrated Power Projects, also known as NIPPs, is the government body that has several power generators in the country.

The government has sold shares of the state-owned electricity company to private investors in 2013, but this did not stop frequent power outages in Africa’s largest economy.

The Finance Minister Zainab Alam stated after a weekly Cabinet meeting that there would be “more of these NIPPs” that would be for sale in 2022.

Ahmed stated that government revenue was not sufficient to finance projects such as roads, rail, and water. Therefore, the government would keep borrowing.

To finance spending by 2021, President Muhammadu Buhari’s government plans to borrow $6 billion from the outside to partially fund the expected deficit of 6 trillion Naira.

Ahmed stated that Nigeria’s borrowing is a matter of concern. However, a look at its total amount shows it remains within safe and sustainable limits.

She stated that total borrowing (which was equivalent to 23% GDP at July’s end) was less than its counterparts.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.