Business
BPE To Raise N267bn From Privatisation Of 20 Firms
The Director-General of the Bureau of Public Enterprises, (BPE) Mr. Alex Okoh,says the bureau is posied to raise N266.9 billion from privatization of 20 companies in order to fund the 2020 federal government budget. has advised against re-nationalisation of the nation’s electricity power assets.
He spoke at a breakfast meeting where he presented the bureau’s 2020 Work Plan, Revenue and Expenditure Projections to the media in Abuja, last Saturday.
Responding to concerns over the fate of the privatised power companies, as the National Economic Council, NEC, committee on the review of the sector’s privatization commenced work, Okoh stated: “What I will not advocate, as an individual, is the re-nationalisation of the power sector. I think it will be a fundamental error to go in that direction.”
He added, “The problem, as far as I am concerned, is not the privatization of the DisCos (Electricity Distribution Companies) or the entire value chain. The problem essentially is in the design of the reform of the power sector for privatization. Recapitalising the DisCos, will it solve the problem? Maybe, maybe not. He said that the electricity sector had to be taken more seriously, as according to him, Nigeria, the largest economy in Africa has a mere Electricity per capita of about 150 KWh, compared to South Africa, the continent’s second largest economy,with a record of Electricity per Capita of 4,437 KWh.
He said: “We have not started to even scratch the issue of resolving the problem of power in Nigeria and if we don’t resolve the problem of power, then we are not going anywhere in terms of economic growth in the country. I think we have to be more concerted on resolving the power issue.”
Okoh said that the major problem with the sector was the transmission and distribution, as there was excess capacity in the generation segment of the industry.
He projected that the bureau would raise N266.9 billion from the privatization of 20 companies in order to fund the 2020 federal government budget. The sum of N3.9 billion is expected to be spent on the privatization exercise this year.
He projected a revenue of N268 billion from nine power enterprises including the Yola Electricity Distribution Company; Afam Power Plant; and the Nigeria Integrated Power Plants (NIPPs).
The BPE boss said Post Transaction management unit of the bureau is expected to yield the sum of N1. 987 billion; while Infrastructure and Public Private Partnership sector would be expected to generate N626. 2 million.
According to him, the Development Institutions and Natural Resources sector would yield N440 million; while another N220. 136 million would come from the Industries and Communications sector.
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
