The federal government aims to generate over N189 billion in 2026 through the sale of national assets and the privatisation of select public holdings, making asset disposals a key component of financing what is set to be Nigeria’s largest budget in nominal terms.
In the 2026 Appropriation Bill, the N189.16 billion forms part of a N25.27 trillion financing plan designed to bridge a substantial fiscal gap caused by expenditure far outpacing projected revenues, according to ThisDay.
This projection complements N23.04 trillion in new debt issuance and roughly N2.05 trillion in multilateral and bilateral project-tied loans, highlighting the government’s growing reliance on non-oil revenue sources to fund both operations and capital projects.
While the specific assets slated for sale and privatisation in 2026 have not been disclosed, the federal government is exploring a wide range of transactions aimed at monetising public holdings, easing fiscal pressure, and shifting the state away from direct involvement in commercial activities.
The plans span strategic sectors including oil and gas, power, transport, industry, and real estate.
In September last year, the Director General of the Bureau of Public Enterprises, Ayodeji Gbeleyi, confirmed that 91 federal assets were scheduled for privatisation, part of ongoing efforts to optimise public enterprises, attract investment, and enhance efficiency across key sectors of the economy.
He stated that of the 91 firms earmarked for privatisation or commercialisation, 16 are in the oil and gas sector, including refineries and depots, though he did not specify their names. Twelve operate in agriculture, 20 in aviation, and 28 in other public enterprises.
He added that the remaining firms span mines and steel, transport, eco-tourism, and include two agencies under the Federal Capital Territory Administration.
However, according to the 2026 Appropriation Bill, total government expenditure for 2026 is projected at N58.47 trillion, compared with expected revenues and inflows of N33.20 trillion, leaving a financing gap of N25.27 trillion.
This shortfall is to be covered through a mix of borrowing, asset disposals, and external project-tied loans.
Analysis of the budget framework indicates that while asset sales account for less than 1 per cent of total expenditure, their proceeds are viewed as a strategic funding tool that complements debt financing and supports the government’s fiscal sustainability goals.
Within the revenue structure, the government anticipates N23.09 trillion from its share of gross federation revenues, N4.31 trillion from independent sources, N4.98 trillion from government-owned enterprises (net of operating surplus), N1.37 trillion from grants, and N1.99 trillion from other inflows, including domestic recoveries, assets, and fines.
The 2026 budget also allocates N23.21 trillion to capital expenditure—the largest single component of spending, accounting for nearly 40 per cent of total outlays.
The scale of this planned investment underscores the need for diversified financing sources, including asset sales, to reduce over-reliance on borrowing.
