Experts caution as Nigeria plans state asset sales to attract investment

The government of Nigeria is preparing to sell portions of its state-owned assets in 2026, part of an effort to close a projected $18.6 billion budget deficit and attract fresh domestic and foreign capital into Africa's most populous nation.

Finance Minister Wale Edun said authorities are mapping out specific assets and timelines under the reform agenda of President Bola Tinubu. The plan is expected to open sectors long dominated by the state including energy, infrastructure and education, to greater private participation.

The proposed divestments build on sweeping economic reforms launched in 2023, when Nigeria unified its foreign exchange windows and removed costly fuel subsidies. The measures were designed to stabilize public finances and restore investor confidence. But they also triggered immediate pain: Inflation surged, the Naira weakened sharply and households faced rising living costs.

Officials now argue that selling or concessioning underperforming public assets could help shore up revenues, improve efficiency and stimulate growth.

"The asset sale is not just a mere fiscal exercise," said Dele Oye, an investment advisor. "It's a huge opportunity for both local and foreign investors to buy into infrastructure and energy access in Nigeria. It will naturally make the assets more efficient."

Economists say the move is overdue.

"Nigeria's decision to sell state-owned assets is long overdue," said Akintunde Ogunsola, an economist. "There are some assets the government is not using in a viable way to generate revenue. Selling them means making those assets viable so they can generate more revenue, create jobs and expand the GDP of the country."

In recent months, Nigerian officials have intensified efforts to court investors abroad, appearing at global economic forums and holding meetings in the Gulf to pitch the country as open for business. The asset sales are expected to rely heavily on public-private partnerships, a model the government hopes will limit fiscal exposure while unlocking private capital.

However, analysts caution that investor appetite will hinge less on announcements and more on policy consistency and security conditions.

"Policy risk is there," said Isaac Botti, an economist. "They do not support real investment. So, we need to look at our policies, particularly sector specific policies. Most of the time we make policies for a sector and you have financial policies or monetary policies or fiscal policies that are contradictory. We need to address the issue of policy inconsistencies, or policies summersault for those sectors to thrive."

Following a recent GDP rebasing, Nigeria is now ranked as Africa's fourth-largest economy. The government hopes the 2026 asset sales program will deepen private sector participation and signal that reforms are moving from rhetoric to execution.

For investors, the next two years may determine whether Nigeria's reform drive translates into sustained opportunity or remains another ambitious plan constrained by implementation challenges.

Edited by CGTN Africa reporter Marion Gachuhi