Business
‘Nigeria’s Public Enterprises Fritter N200bn Annually’
Various government departments and agencies indicate that Nigeria’s public enterprises have, prior to the privatisation programme, frittered over N200 billion annually.
This colossal resource made available by the Federal Government by way of grants, subsidies, import duty waivers and tax exemptions never yielded any substantive fruit as public enterprises by the mid 1980s when privatisation were not meeting the objectives for which they were established. The vision 2010 committee, had in 1996 lamented that while the Federal Government had invested up to $100 billion in state enterprises, return on these investments, on the average amounted to 0.5 per cent per annum.
The oil boom era of the 1970s made it possible for government to pump in huge funds into public enterprises. With poor monitoring and supervision as well ass widespread corruption, the public enterprises were turned into waste pipes with no commensurate economic or social return to the state or the Nigeria State.
Not surprisingly, the World Bank and the International Monetary Found (IMF) in the face of the economic crises that swept across many economies in Africa in the mid 1980s recommended economic adjustment programmes that emphasised that government disengage from investing in or managing enterprises and concentrate on creating an enabling framework for business whilst leaving enterprise management to private sector operators.
The privatisation process which was first managed by the then Technical Committee for Privatisation and Commercialisation (TCPC) and later the Bureau for public enterprises brought glimmers of hope for the viability and productivity of the mismanaged public enterprises.
The hope kindled by the onset of privatisation in Nigeria seems to have dwindled, while some enterprises slated for sale are yet to be privatised.
The non-application of due process in the privatisation of certain public enterprises, the lingering reform of power generation and distribution, and the controversy, intrigue and foot-dragging bedevilling the deregulation of the downstream oil sector remain open sores that have blighted the privatisation programme in the country.
The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.
In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.
However, with time, the need has arisen to streamline these provisions to reflect present-day realities.
“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.
“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.
According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.
Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.
They must also create separate accounts to warehouse processing charges collected on excess withdrawals.
Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.
However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.
The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) says Nigeria risks massive brain drain in the oil and gas sector due to poor remuneration.
Mr Festus Osifo, President of PENGASSAN, said this while briefing newsmen at the end of the National Executive Council (NEC) meeting of the union on Thursday in Abuja.
He said the sector was facing challenges arising from Naira devaluation and inflation, noting that, oil and gas skills remained globally competitive.
“A drilling engineer in Nigeria does the same job as one in the U.S. or Abu Dhabi,” he said.
Osifo said the union must take steps to bridge the wage gap to prevent members from leaving the country for better opportunities abroad.
“If we don’t act, the brain drain seen in other sectors will be child’s play,” he said.
He said PENGASSAN had recorded significant gains through collective bargaining across oil and gas branches.
“We signed numerous agreements across government agencies, IOCs, service and marketing sectors,” he said.
He said the agreements brought relief to members facing rising costs of living, adding that, the association’s duty is to protect members’ jobs and enhance their pay.
Osifo urged companies delaying salary reviews and those foot-dragging as a result of the prevailing economic realities, to do the needful.
He said the industry employed some of the nation’s best talents, making competitive pay critical to retaining skilled workers.
“This industry recruits the best. Companies must provide the best conditions,” he said.
On insecurity, Osifo urged government to take decisive action against terrorism and kidnappings across the country.
“We are tired of condemnations. government must expose sponsors and protect citizens,” he said.
He urged government at all levels to prioritise tackling insecurity through better funding and equipment for security agencies.
Osifo said PENGASSAN supported calls for state police to improve local security response, adding that decentralising policing will protect citizens better than rhetoric.
He also said economic indicators meant little, if food prices remained high and farmers could not return to farms due to insecurity.
“Nigerians want to see food on the table, not macroeconomic figures,” he said.
He urged government to coordinate fiscal and monetary policies to ensure economic gains reach households.
“Translate macro results to food on the table,” he said.
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