Nigeria to raise $17bn from asset sales- JP Morgan

JP Morgan, a worldwide funding financial institution, has revealed Africa’s greatest financial system is upping its sport in a bid to unlock $17 billion from asset gross sales, a transfer geared toward relieving strain on the nation’s struggling FX liquidity.

“The authorities are within the preliminary levels of figuring out belongings on the market, which can present some medium-term reduction,” JP Morgan mentioned in its newest report about Nigeria.

It added, “For instance, the President’s coverage advisory council has beneficial the federal government promote down its stake in probably the most joint-venture oil and gasoline belongings, a proposal that’s estimated to herald as much as US$17bn.”

BusinessDay had earlier reported Nigeria plans to unlock the N180 trillion trapped in lifeless or idle authorities belongings as a renewed hunt for money heats up.

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Over 70 entities have been captured in a nationwide asset register that goals to establish the nation’s huge and principally idle belongings, in accordance with the Ministry of Finance Integrated (MOFI), whose work it’s to construct the vital database that may assist unlock badly wanted money for the federal government.

JP Morgan mentioned the just lately introduced $3bn mortgage to Nigerian Nationwide Petroleum Firm Ltd may assist partly enhance FX liquidity situations available in the market.

“We count on NNPC to promote the {dollars} to CBN and remit the naira proceeds to the federal government as upfront funds for oil revenues and taxes,” JP Morgan famous.

“That being mentioned, the massive exterior financing wants of the personal sector will maintain FX strain,” it concluded.