The then Head of State Commander-in-Chief the Armed Forces of the Federal Republic of Nigeria , His Excellency General Abdulsalami Alhaji Abubakar announced in his national broadcast in July 20, 1998 that Government would privatize its investment in Telecommunications, Electricity, Petroleum Refineries, Petrochemical, Coal and bitumen production and Tourism in addition to spill over from the first phase of privatization.

Under the program Government will retain 40% of the equities of the affected Enterprises whilst 40% will be alienated to strategic Investors with the right technical, Financial and management capabilities. The remaining 20% will be sold to the Nigerian public through Stock and Exchange. 

President Olusegun Obasanjo in his Presidential order to the Vice-President Of the Federal Republic of Nigeria dated 6th July 1999, directed that as the first step in the phased implementation of the Administration’s privatization program, action was to be initiated to enable the sale of shares listed on the Lagos Stock Exchange and own by the Federal Government and its agencies in :
Commercial Merchant Banks
Cement Plants
Petroleum Marketing Companies

The sales are to be completed by December 1999 and Core Investors are to be encouraged to buy into any of the privatized enterprises witch will be paid in foreign currencies. The second phase will consist of hotels and vehicles assembly plants, amongst others.