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NBCC Forum: BPE has Generated over N1trn from Privatization of 234 SOEs - Alex Okoh

Nov 12, 2021   •   by   •   Source: Proshare   •   eye-icon 2742 views

Friday,November 12, 2021 / 4:54 PM / Ottoabasi Abasiekong for WebTV / Header ImageCredit: NBCC

 

Through its commercialization and privatization of state-owned assetsand enterprises, the Bureau of Public Enterprises, BPE   has so fargenerated over N1trn from 234 transactions.

 

Mr. Alex Okoh, the Director-General of the BPE, made this point as thekeynote speaker at the Nigerian-British Chamber of Commerce investor seriesforum, which discussed the theme "Public-Private Partnerships: Investment andConcession Opportunities in Nigeria".

 

From his presentation, the Agriculture sector accounted for the highesttransactions with 32 deals followed by Banking and Insurance, 31deals  andCement 15 deals.

 

BPE's sectoral reforms have changed the following sectors: the powersector, telecommunications sector, financial services sector (banking andinsurance), ports and pension sectors, amongst others.

 

According to Okoh, Nigeria has a large and critical gap in itsinfrastructure stock compared with other emerging economies(i.e. aninfrastructure stock to GDP of about 35% as against 70% for other emergingeconomies).

 

Citing the Revised Nigeria Integrated Infrastructure Masterplan(NIIMP),he said Nigeria requires US$2.3trn over the next 23 years (2020-2043) to bridgeits infrastructure gap.

 

Considering the need for Nigeria to mobilize resources for itsinfrastructure, he stated that the way to go was through public-privatepartnerships, which have the following advantages;

  • Reduces Government's borrowing for infrastructure development as financial risk is usually transferred to the private sector
  • PPP enables parties to handle risks they are best suited to manage (risk structuring)
  • Promotes Private sector innovation and efficiency
  • PPP encourages transparency and accountability

 

In terms of prospective assets and enterprises that BPE on behalf of theFederal Government is considering to concession, he highlighted some of theSOEs, to include;

  • Zungeru & Other Hydro Power Plants Projects
  • Calabar and Kano Free Trade Zones
  • Tafawa Balewa Square
  • Lagos International Trade Fair Complex
  • Construction of LPG and Ethanol Plant in Delta State
  • Relocation and Land Swapping of Correctional facilities in 6 Geopolitical Zones
  • MKO Abiola Stadium Abuja and National Stadium, Lagos handled by the Ministry of Youth and Sports
  • Ongoing Concession of Four (4) international airports managed by Federal Ministry of Aviation
  • Potential for a concession of Lagos-Ibadan expressway

 

In his remarks,  Mr. Teslim Shitta-Bey, Managing Editor/ ChiefEconomist of Proshare, the sponsor of the advocacy series, supported theposition of the Director-General of BPE that Nigeria should be looking atfiscal issues from a balance sheet perspective rather than an income statementapproach. The balance sheet approach looks at national assets and liabilitiesas distinct from revenues and expenditures.

 

Shitta-Bey noted that the present global liquidity glut could provideopportunities for Nigeria to unlock its assets for investments. He was happythat policymakers, experts, analysts, and scholars have shared that Nigeriafaces a revenue challenge, not a debt crisis.

 

According to him, great countries and companies are reimaginingsustainable strategies

 

He called for a new paradigm and purposeful public-private partnership(PPP) approach geared towards sustainable development in Nigeria.

 

Speaking further, he said Proshare has done about 15 years in the marketwith significant footprints in the capital and money markets and is also makingits impression in governance and privatization.

 

Giving her opening remarks earlier at the event, Mrs. Bisi Adeyemi, the President of the Nigerian-British Chamber of Commerce (NBCC), said theinvestor series forum was an opportunity for chamber members to connect withbusiness and investment opportunities.

 

She said this is in partnership with states, parastatals, andinstitutions. This series was an opportunity to discuss concessions,privatization benefits of non-performing public corporations, and the legalframework protecting investors in public-private partnerships.


Proshare Nigeria Pvt. Ltd.


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 Proshare Nigeria Pvt. Ltd.

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