FG Targets N189bn Asset Sales As Budget Deficit Hits N25.27trn

The federal government plans to raise N189.16 billion in 2026 from the sale of national assets and privatisation of public holdings. The move forms part of a broader effort to finance Nigeria’s largest budget in nominal terms and reduce pressure on borrowing.
Figures from the 2026 Appropriation Bill show total expenditure of N58.47 trillion against projected revenues of N33.20 trillion. This leaves a deficit of N25.27 trillion. Asset sales sit alongside N23.04 trillion in new debt and N2.05 trillion in multilateral and bilateral project loans.
For the public sector, asset disposals signal a gradual shift away from direct government involvement in commercial activity. Planned transactions cut across oil and gas, power, aviation, transport, agriculture, mining, real estate, and tourism. In 2024, the Bureau of Public Enterprises (BPE) confirmed plans to privatise or commercialise 91 federal assets. These include refineries, depots, aviation firms, agricultural entities, and transport companies. Equity in 35 firms will move to full privatisation, while 57 will see partial sales.
For households, the policy affects service delivery and pricing over time. Private ownership often brings tighter cost control and clearer performance targets. You face potential changes in tariffs, fees, or service quality in sectors such as power, transport, and fuel distribution. Job restructuring in privatised firms also affects household income stability in affected sectors.
Market implications remain significant. Asset sales create entry points for local and foreign investors seeking exposure to strategic sectors. Transaction flow from privatisation supports capital market activity, advisory services, and project financing. The modest size of asset sale proceeds, less than 1 percent of total spending, limits market shock while signalling policy direction.
Risks remain visible. Poor valuation weakens public confidence and reduces fiscal benefit. Weak governance after sale erodes efficiency gains. Concentrated ownership raises competition concerns in strategic industries. High debt financing still dominates the funding mix, with debt service set at N15.91 trillion, over one quarter of total spending.
Opportunities sit in execution. Transparent sales improve investor confidence. Reduced fiscal strain frees resources for capital projects. Private operators bring capital discipline into sectors with high operating losses. You benefit when infrastructure delivery improves without additional tax pressure.