About ₦180 trillion ($900 billion) in “dead assets,” mostly in real estate, have accumulated in Nigeria; these assets are unproductive and do not provide income. Notwithstanding the possibility of releasing these resources to promote economic expansion, the nation has encountered considerable obstacles in the form of structural issues including red tape, corruption, and bureaucracy. From ₦12.6 trillion in 2015 to ₦121.7 trillion in 2024, the public debt has increased dramatically, with debt service now accounting for more than 70% of government revenue.
Prolonged bureaucratic procedures and erratic policies have been major contributors to the failure of attempts to unlock dead assets, such as the Presidential Initiative on Infrastructure. With up to 25% of deceased assets mired in dispute, Corruption also plays a part. Famous instances of squandered assets are the Ikoyi Federal Secretariat Complex, several refineries that have used billions of dollars in rehabilitation money but are still not in operation, and the Ajaokuta Steel Mill, which has lain idle since 1994 despite being almost finished.
Some of these assets may be put to good use through PPP.
These wasted resources have a significant negative economic impact since they are lost chances for housing development, industrial expansion, and employment generation. Some of these assets may be put to good use through privatisation or public-private partnerships (PPP), according to experts. This might strengthen the Economy and decrease outflows of foreign currency. International case studies and professional recommendations can be used to address Nigeria’s dead asset problem by providing insightful information about how comparable issues have been resolved in other countries.
The redevelopment of the Battersea Power Station in the United Kingdom serves as a successful example. Once a famous but abandoned building, it was given new life by a public-private partnership (PPP) that brought in billions of pounds for residential, business and cultural areas. Nigeria might use a similar PPP method. The country can leverage Private Sector knowledge and funds to promote development and operational efficiency by leasing or selling inactive government buildings, like as the Federal Secretariat Complex in Ikoyi or the Ajaokuta Steel Plant, to private investors.
Nigeria should act quickly to lease or privatise non-performing assets.
Though they have been delayed, hopeful initiatives such as the Nigerian National Petroleum Company’s (NNPC) $1.5 billion restoration of the Port Harcourt refinery demonstrate promise. Advocates of greater privatisation argue that private ownership can address long-standing concerns of corruption and inefficiency in Nigeria’s steel factories and non-operational refineries. One successful example of how private capital can prosper where public initiatives have failed is the privately funded Dangote Refinery, which is almost finished. Inter-agency cooperation and policy consistency are crucial, according to experts like US-based Finance specialist Ayobami Ishola.
Furthermore, the Nigerian government can establish a climate in which private Investors feel comfortable funding large-scale asset development projects by filling in governance gaps and reducing bureaucratic roadblocks. Nigeria’s estimated 28 million-unit housing gap might be partially addressed, according to Real Estate expert Chudi Ubosi of Nigeria, by allowing under-utilised buildings to return to the market. Specific recommendations require that Nigeria acts quickly to lease or privatise non-performing assets, streamline the laws governing property registration, and increase openness in the battle against corruption.
Related Article: FG, World Bank to Tackle Land Registry Gap
It is advisable to establish public-private partnerships, especially for large-scale projects requiring substantial capital investment, such as Tinapa Resort and Ajaokuta. Along with robust control, the government must make sure that any privatisation projects avoid the mistakes made in the past when corruption ruined plans for success. By applying these reforms, Nigeria may unleash trillions of Naira in worth, increase economic growth, lessen its increasing debt load, and provide much-needed jobs for its people—all by learning from overseas case studies.