Nigeria attracted $7.8 billion FDIs through the sale of 53 public assets

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The Bureau of Public Enterprises (BPE) attracted $7.8 billion Foreign Direct Investments through the sale of 53 public enterprises in the last 18 years.

The agency’s Director-General, Mr. Alex Okoh, disclosed this while briefing the press on its 2018 Work Plan and other initiatives of the bureau, in Abuja, yesterday. According to him, from 1999 till date, BPE privatized, commercialized or concessioned a total of 142 public enterprises.

Mr. Okoh said that with the current wide gaps in infrastructure funding and financing of socio-economic development programmes, sale of assets would be more economical than borrowing, which piles up debt.

He said, “Besides sentiment, there is no reason to borrow to run your government. Why not release the non-performing assets from which you can realise some capital and allow the private sector to operate them in a more efficient manner?”

On the card, in the immediate, the BPE boss said are: the privatisation of Afam Power Plant; re-privatisation of Yola DisCo; Concessioning of “B” Terminal of Old Warri Port; re-concessioning of the Lagos Trade Fair; partial commerciaslisation of six River Basin Development Authorities; as well as, partial commercialization of three National Parks.

Mr. Okoh explained “the re-privatisation of the Yola DisCos has become necessary because the investors declared force majeure and the company had to revert to the federal government.”

On Lagos Trade Fair Complex, the BPE boss said that the agency was in the process of appointing a new concessionaire.

He said “It is a tragedy that the complex, with the massive investment in its infrastructure is in its current state of dilapidation.”

ALSCON given to Rusal, to start operation latest early ’19 Mr. Okoh assured that the Aluminum Smelting Company of Nigeria (ALSCON), Ikot-Abasi, Akwa Ibom State, would come on stream late this year or latest early next year. His words, “Government has revoked the sale to BFIG.

We have reverted to Rusal. We are in the process of conducting a Technical Audit. Rusal has submitted to the BPE what it will take for the plant to commence operation. “Nothing should prevent the plant from going into production at the end of the year or early next year. We are not sentimental in this regard.

We believe that the best operator should be allowed to put it into operation.” The D-G explained that the controversy on the issue of the preferred bidder had been resolved by obeying the Supreme Court judgment, which ruled that the company be given to BFIG.

He added however, that after writing BFIG to pay 10 per cent of its $410 million bid, according to the terms of the offer, it failed, compelling BPE to revert to Rusal.

The BPE boss also announced that the Bank of Industry would soon be recapitalized and privatized with a view to allowing the private sector to take control of its management.

Under the new structure, the federal government would hold only 40 per cent equity and give out 60 per cent to the private sector. According to him, of the 60 per cent, Farmers’ Cooperatives would be given 20 per cent to enable them a voice in the management of the bank.

Mr. Okoh lamented the reluctance of some Ministries Departments and Agencies of the federal government to let go of enterprises under their supervision, even when such enterprises were in efficient.

He said, “Sentimentally, the MDAs want to hold unto these enterprises. There is this attitude of wanting to maintain control even if these enterprises are dying under their control.”

The D-G regretted that about 36 to 37 per cent of the 142 enterprises so far privatized, commercialized or concessioned failed to meet the objectives.

He said, however, that such failures were due to a myriad of factors , including policies of government which, in some cases frustrated the operators

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Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA).

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