63% Privatised Firms Are Performing – BPE
BY COBHAM NSA, ABUJA – The Bureau of Public Enterprises (BPE) says about 63 per cent of the 142 privatized enterprises in the country are performing well.
Director General of the Bureau, Mr Alex A. Okoh said the good news is that from inception till date, the enterprises have, by their impressive performances, met the set objective of the privatization programme.
He told members of the House of Representatives Committee on Privatisation, led by its Chairman, Alhaji Ahmed Yerima, that of the number, the Bureau has already monitored 94 enterprises, adding that the rest are still outstanding because “some were either assets sale or in the first phase of privatization and as such did not fall within the BPE’s monitoring purview”.
The committee members, who were on an oversight visit to BPE in Abuja, were also informed that 37 per cent of the privatised enterprises are under-performing due to tough operating business environment in the country.
Mr Okoh said the development has sadly made many private or privatised public firms to either close shop or relocate to neighbouring countries where the business environment is more conducive.
He further disclosed that of the 142 privatised enterprises, 63 were through core investor sale; nine through guided liquidation; one through sale to existing shareholders; five through public offers; and two, through liquidation.
According to the Director General, eight enterprises were privatised through private placement; 41 through concession; two through debt/equity swap; with 11 through sale of assets.
Giving further breakdown of the enterprises by sectors, Mr Okoh statd that Five were in agric machanisation; Eight in automobiles; Seven in banking and insurance; Six in brick making; Eight in oil and gas; and Six in the cement industry
The BPE boss also listed others to include: 10 in energy construction and services; 12 in hotels and tourism; four in paper and packaging; 19 in solid minerals and mining; Seven in steel and aluminum; four in the sugar sector; 26 in marine transport sector; 19 in power; and one in telecommunications.
He told the lawmakers that BPE has commenced comprehensive review of all non-performing enterprises to ascertain the challenges and issues related to their non- performance.
Mr Okoh however said among the Bureau’s new initiatives are; the Afam Power and Yola Distribution Company privatization; concessioning of the Terminal B of the Warri old Port; restructuring and commercialization of the Bank of Agriculture (BOA); partial commercialisation of NIPOST; restructuring and commercilaisation of the 12 River Basin Development Authorities (RBDAs); reform and commercialisation of three of Nigeria’s National Parks and other projects in the power sector.
In his remarks, Chairman of the House Committee on Privatisation, Alhaji Ahmed Yerima said the members were at the Bureau for first hand information on its activities; and also to ascertain its compliance with the provisions of the 2017 Appropriation Act in line with the House’s resolution that all Ministries, Departments and Agencies (MDAs) must fully comply with the Act.
A statement by Amina Tukur Othman, Head, Public Communications of BPE, said the Committee Chairman promised to deploy its legislative powers to ensure that BPE’s mandate is not usurped by the MDAs.
Alhaji Yerima noted that any attempt in that direction by the MDAs would amount to an infraction on the 1999 constitution.
