As Nigeria grapples with a projected N31.46 trillion budget deficit, pressure is mounting for a smarter financing strategy. Instead of increasing debt, economists are now urging the Federal Government to unlock value from existing assets. Specifically, they recommend listing commercially viable state-owned enterprises on the Nigerian Exchange Limited.
At the heart of this proposal is a simple idea: raise capital without borrowing. By offering shares of government-owned companies to the public, Nigeria can tap into domestic investment and reduce its reliance on loans. In doing so, the government could also improve transparency, efficiency, and corporate governance across these entities.
Importantly, recent market performance strengthens this argument. The Nigerian stock market has expanded significantly, growing from N99 trillion to N156 trillion in value. As a result, analysts believe there is enough local liquidity to support large-scale funding needs, including infrastructure development.
Furthermore, listing these enterprises could deepen market participation and boost investor confidence. It would allow pension funds, institutional investors, and retail participants to channel funds into productive sectors of the economy. At the same time, it creates an opportunity for Nigerians to own stakes in key national assets.
However, experts stress that execution will be critical. Only commercially viable and well-structured enterprises should be listed to ensure strong investor demand. In addition, regulatory clarity and policy consistency will play a key role in attracting sustained investment.
Ultimately, this approach signals a shift from debt-driven financing to market based solutions. If implemented effectively, Nigeria could not only reduce its fiscal burden but also strengthen its capital market and accelerate long term economic growth.
