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.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.