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8 State-Owned Companies In Nigeria Up For Privatization

8 State-Owned Companies In Nigeria Up For Privatization

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Nigeria, Africa’s leading economy and the most populous country on the continent with more than 170 million people, has over the year privatized several state-owned companies. While some went on well a recent sale-off of 10 power plants was mired with allegations of corruption that left many investors disgruntled.

Despite this the oil producing nation that is facing tough financial times due to a fall in commodity prices in the global market, still plans to hive off more companies to private investors. Some of the companies up for privatization in Nigeria are;

Sources; BBC, Bloomberg, portstrategy, Hope for Nigeria, Vanguard News, The Guardian

Image: loveandrelate.com
Image: loveandrelate.com

Harcourt Refining Company Limited

It is a subsidiary of the Nigerian National Petroleum Corporation, the national body that manages the oil and petroleum sector in the West African nation. It is located in Rivers State. It has two refineries, an old one with a daily production capacity of 60,000 barrels that was commissioned in 1965. The new plant was commissioned in 1989 and produces 150,000 barrels per day. The Nigerian government started efforts to private the oil refinery in 2014.

Peugeot Automobile Nigeria showroom (Image: pulse.ng)
Peugeot Automobile Nigeria showroom (Image: pulse.ng)

Peugeot Automobile Nigeria Limited

It was founded in 1972 in Kaduna. It is a joint venture between PSA Peugeot Citroen of France and the Nigerian government. It is a car manufacturing and assembling company that is owned by Asset Management Corporation of Nigeria, (AMCON). Plans to privatize it started in January 2016, when AMCON declared its intention to sell its majority share of 79.3 percent.

Nigerian Ports Authority (Image: cpcstrans.com)
Nigerian Ports Authority (Image: cpcstrans.com)

Nigerian Ports Authority

It is a federal government agency that governs and manages the ports of Nigeria. Privatization of various parts of the ports authority started in 2004. There have been numerous protests against efforts by the Nigeria government to privatize the remaining functions.

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Nigerian Telecommunications Limited (Nitel)

It is the state telecommunications company in Nigeria. It was formed in 1985. Its privatization started in 2014. The National Council on Privatization approved its sale to NATCOM Development and Investment Limited, for $252 million.

Image: mynewswatchtimesng.com
Image: mynewswatchtimesng.com

Nigeria Railway Corporation

It was formed in 1898. It is the national body that is responsible for the management and operations of railways in Nigeria. In May 2015, its privatization efforts were initiated by the Federal government of Nigeria. These were caused by the government’s desire to provide adequate, safe, reliable and efficient rail services, free from the funding challenges that have strained the corporation.

Photo: worldbank.org
Photo: worldbank.org

Bank of Agriculture Limited

It was founded in 1972 as Nigerian Agricultural Bank. It is wholly owned by the Federal Government of Nigeria. It was started in order to provide credit services to farmers, micro-finance institutions and help boost self-employment as a way of controlling rural-urban migration.

Its privatization started in 2015. It is being done to improve the facilitation of credit services to players in the Nigerian agricultural sector. A majority of the shares will be sold to farmers associations in the West African nation. The government will only be left to control minority shares.

Managing-Director-Bank-of-Industry-BOI-Mr.-Rasheed-Olaoluwa (image: nationalmirroronline.net)
Managing-Director-Bank-of-Industry-BOI-Mr.-Rasheed-Olaoluwa (image: nationalmirroronline.net)

Bank of Industry

It was founded in 1964 as the Nigerian Industrial Development Bank. It was restructured in 2001 and changed to its current name. The National council on Privatization approved plans to privatize it in 2014. It is the oldest financial institution in Africa’s most populous nation. Bank of Industry provides long-term financial support to various sectors of the Nigerian economy.

Federal Airports Authority of Nigeria (Image: dailytimes.ng)
Federal Airports Authority of Nigeria (Image: dailytimes.ng)

Federal Airports Authority of Nigeria

It was founded in 1935. It manages all commercial airports in Nigeria and offers services to both passenger and cargo airlines. It has its headquarters at the Murtala Muhammed International Airport in Lagos. The government announced plans to private the agency in 2015. The plans are mainly to transform the nation’s airports and make them more viable for business in Africa and globally.