Nigerians will be availed an opportunity of ownership stakes in five public enterprises and Electricity Distribution Companies ( Discos) next year, courtesy of Bureau of Public Enterprises (BPE).
The privatisation agency has wrapped up plans to offload 40 percent remainder of federal government’ portion in Eleme Petrochemicals Company Limited (EPCL), Nigeria Re- insurance ; Nicon Insurance ; Discos and the Nigeria Machine Tools in Oshogbo to Nigerians public via Public Offerings ( IPO) at the capital market. Director – General of BPE, Mr. Alex Okoh confirmed the impeding development at a chat with media representatives in Abuja.
BPE had sold 60 percent equity in the five enterprises to core investors, leaving government with 40 percent balance.
Okoh confirmed to newsmen that, privatisation program recorded significant mileages in the past six months from both foreign and local investors.
“The reception of the idealogy of privatisation is making more sense and gaining more grounds under the current administration than the previous one. In the past six months you can count the number of trips , visits president has made to seek for Foreign Direct Investments ( FDI) for economy; and to create enabling environment for this investments; to locate the opportunities locally. That it’s self is huge because you are placing yourself in the competitive international capital market or investment market that listen , look at us as well. There are huge opportunities for your investment now , so that is what is different”,he said.
Speaking on BPE plan to sell government’s 40 percent remainder stakes to public, Okoh said it will happen in 2024.
“IPO through capital market is a very credible strategy for us. Once we are able to resolve few changes we are having now, especially ownership challenges with some Discos, we resolve to sell. So capital market , yes once we resolve the 40 percent ownership in the discos, once we are done with the discos, we also plan to take Eleme petro chemicals to the market, we had also planned to take Nigerian Reinsurance insurance to the market, Nicon insurance to the capital market . Of course , we started but had some problems with core investor, Jimoh Ibrahim. So, there are lots of issues involve in taking some of these entities to the market. Nigerian Machine tools, Oshogbo is also slated for the capital market. Yes on all front, we expect more active year in 2024 for the BPE , and every step of the way both in terms of educating the public and also helping us to navigate various stake holder concerns “, Mr. Okoh explained.
To effectively undertake reforms of public enterprises, and conduct sales and Post privatisation assessment, federal government allocated N2.4 billion expenditure to BPE in 2024 fiscal budget.
Of the amount the personnel cost is allocated N1.4 billion, salary and wage N8244.8 million; allowance and social contributions to gulp N 575. Million while training is allocated N80 million.
