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Tinubu fires CEOs of FCCPC, BPE

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Abuja, Jan. 0, 2024: President Bola Tinubu has dismissed the heads of the Federal Competition and Consumer Protection Commission, Mr Babatunde Irukera and that of the Bureau of Public Enterprises, Mr Alexander Okoh.

This is contained in a statement by Chief Ajuri Ngelale, Special Adviser to the President on Media and Publicity, on Monday in Abuja.

The Presidential spokesman said that the dismissal was in conformity with plans to restructure and reposition critical agencies of the Federal Government.

This, he added, was also towards protecting the rights of Nigerian consumers and providing strong basis for enhanced contributions to the nation’s economy by key growth-enabling institutions.

Ngelale said that the two dismissed Chief Executives are directed to hand over to the next most senior officer in their respective agencies, pending the appointment of new ones.

He said that the dismissal of the two heads was with immediate effect.

BPE

BPE commits to optimisation of assets through private-sector investment

Abuja, Dec. 13, 2023: The Bureau of Public Enterprises (BPE) has reiterated its commitment to optimise the Federal Government’s assets through private sector investment.

Alex Okoh, Director-General, BPE, said this at a media event in Abuja.

Okoh said there was a need for the Federal Government to rely less on borrowing and look to private sector investments to fund the nation’s fiscal plans.

He said the message of economic liberalisation was resonating more with the current administration.

Okoh said the environment and the reception of the ideology of privatisation were making more sense and gaining more ground under the present administration than the previous ones.

The director-general said the present government was free market-oriented and private sector-oriented, thereby showing encouragement for the private sector to play a more dominant role in the economy.

He said this was against previously keeping everything within government, even when inefficiently managed.

“The president has been engaging the international investment community with the same message that Nigeria is opened for business.

” The signal we are sending is that we have the opportunities for foreign direct investments to locate opportunities within the sector.

“For us, it is the way to go. We cannot borrow ourselves out of this problem because the more you borrow the deeper you dig the hole.

“Our position has always been that we need to optimise the assets the Federal Government has and to rely less on borrowing to fund our fiscal plan.

“That is the role we will continue to play and more aggressively in 2024.”

Okoh said the size of Nigeria’s infrastructure stock to Gross Domestic Product (GDP) was about 35 per cent, describing it as low for the size of the country/economy.

He said other African countries considered to be ranked below Nigeria had a higher infrastructure stock to GDP compared to Nigeria.

The director-general said Ghana’s infrastructure stock to GDP was 45 per cent, while South Africa was about 70 per cent, and Egypt was close to 68 per cent.

“So imagine if we can raise the level of the infrastructure stock, we can imagine the multiplier effect and impact on Nigeria’s GDP.

“So we need to rethink how we want to grow this economy and create prosperity for the citizens.”

Okoh called on the media to help in properly framing the narrative of economic liberalisation and opening the economy for private sector participation.

According to him, “we are not just dashing assets that are considered national patrimony to people anyhow.

“We reason through each privatisation and strategy we are adopting before we go ahead to take those decisions. More goes into the assets optimisation mandate of the bureau.

“There is a lot of efficiency brought into the management of these assets as a result of privatisation, commercialisation and concessioning of those assets rather than keeping them under the inefficient management of government.”

Okoh said the best business of the government was to provide an enabling environment for businesses to thrive under the drive of the private sector.

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BPE in agreement to re-concession of Lagos trade fair complex

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The Bureau of Public Enterprises (BPE) has signed a tripartite agreement to commence the re-concession of the Lagos International Trade Fair Complex (LITFC).

This is contained in a statement signed by BPE’s Head of Public Communications, Amina Tukur, in Abuja on Monday.

Tukur said the bureau signed a tripartite agreement with Portman Freight Services Limited and LITFC to lease a portion of the complex to the freight service company.

She said the Director-General of BPE Alex Okoh while signing the agreement said that the event marked the commencement of work on the portion of Parcel A and B that was not designated for concession.

Okoh also said the standardisation of lease agreements would ultimately increase the earnings of the LITFC and the Federal Government in particular.

The director-general said in line with the Privatisation and Commercialisation Act (1999), the National Council on Privatization (NCP) approved the concession of LITFC to Aulic Nigeria Limited in 2007.

However, he said the Concession Agreement was terminated by the NCP in 2017 due to the failure of Aulic Nig. Ltd to meet covenants listed in the concession agreement.

Okoh said BPE was directed to immediately recommence the process of re-concession of the complex.

” The management board of LITFC repossessed the enterprise from Aulic Nigeria Limited.

” The BPE immediately recommenced the process of re-concession of the LITFC as directed by the NCP on behalf of the Federal Government with the call for Expression of Interest (EOIs) on Monday, June 20, 2022.”

Okoh said that in the process of carrying out the concessioning plan, it was discovered Portman Freight Services Limited had an existing 20-year lease agreement for Hall 4 with the former concessionaire (Aulic Nig. Ltd).

“This existing 20-year lease agreement was before the termination of Aulic’s Concession by the NCP in August 2017.”

NITEL

NITEL/MTEL property sold to Lagos state – BPE

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The National Council on Privatisation (NCP), has approved the sale of a NITEL/MTEL Property located at number 3-5 Moloney street, Tafawa Balewa Square, Onikan, Lagos State..

This is contained in a statement signed by Chidi Ibeh, Head of Public Communications, Bureau of Public Enterprises(BPE) in Abuja on Friday.

Ibeh said the property was one of those listed for sale by the Liquidator of NITEL/MTEL Non-Core assets at the cost of N2.5 billion.

“Meanwhile, the property is presently encumbered by the activities of illegal occupants and the Lagos State Government has promised a harmless takeover of the property.”

He said the NCP chaired by the Vice-President, Yemi Osinbajo, granted the approval at its second meeting for 2023 held on Tuesday.

It would be recalled that NITEL was incorporated in 1984 but formally commenced operations in 1985.

NITEL was jointly owned by the Federal Government of Nigeria with 93.3 per cent share and First Bank of Nigeria Plc with 6.7 per cent.

However, MTEL was established in 1996 out of NITEL to provide cellular services.

It started a General System for Mobile communication (GSM) in March 2003 after NITEL transferred its GSM licence it acquired when the Nigerian Communication Commission first auctioned Digital Mobile Licences in February 2001.

Ibeh said the NCP, at its meeting on Feb. 27, 2012, approved the privatisation of NITEL and MTEL through “guided liquidation”.

He said under the guided liquidation strategy, all the core assets and business undertakings of NITEL and MTEL were to be sold as a single or multiple lots.

NITEL and MTEL were to be sold to a qualified bidder by the Liquidator under the general guidance of the NCP.

Ibeh said the strategy was adopted by the council after due consideration of other options, considering the previous failed attempts to privatise NITEL and MTEL through Strategic Core Investor Sale.

The council also considered the failed attempt to privatise NITEL and MTEL through Negotiated Sale strategies and the huge liabilities to creditors to the tune of over N300 billion.”

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BPE explains inability to pay N1.8b severance benefits to SAHCOL ex-workers

The Bureau of Public Enterprises (BPE) says the compulsory contribution to the Treasury Single Account (TSA) is preventing it from paying N1.8 billion severance packages to the ex-staff of the Skypower Aviation Handling Company Limited (SAHCOL) since 2018.

The bureau’s Director for Post Transaction Management, Mr Tajudeen Oduniyi, made this known in a letter with reference number: BPE/PTM/NUATE/11/2022/M10.01 in Lagos on Sunday.

Oduniyi said that its contribution to the TSA stopped it from fulfilling the Memorandum of Understanding (MoU) reached with the former workers in 2018.

He also said all entreaties to Mrs Zainab Ahmed, Minister of Finance, Budget and National Planning, to ensure the release of the funds proved abortive.

The Federal Government in 2015 through its policy had compelled all ministries, departments and agencies (MDAs) to contribute 25 per cent of their revenues to the TSA.

The government had in the middle of this month, gone ahead to increase the contribution to 40 per cent, thereby adding more burdens to the MDAs.

The official said BPE reached agreement with the former 982 staff of SAHCOL on Nov. 2, 2018, after which it inaugurate a negotiation committee to ensure the implementation of the MoU.

He said the organisation has written to the finance minister for fund to settle the retrenched workers but is still awaiting a reply.

“In the light of the foregoing, it has become expedient to update you on our modest efforts to bridge communication gap from the MOU we signed with you on November 2, 2018.

“This is in addition to our Director-General‘s willingness to offer to pay the redundancy as opposed to the stand of the Chairman of SAHCOL.

“Also recall that at the inception of this administration in 2015, all funds of government agencies and MDAs were swept into the Treasury Single Account (TSA), thus disabling us financially. Given this scenario, our only option was to write to the Minister of Finance for funds to settle you, which we did via our memo on May 19, 2022.”

Oduniyi said it had employed several persons to assist on the issue, noting that a visit was paid to a director with the office of the Accountant-General of the Federation on Friday.

He appealed to the workers to show understanding until the issue is resolved.

However, there are strong indications that the workers who had been sacked since 2010 by the new owners of SAHCOL (now Skyway Aviation Handling Company (SAHCO Plc), may cause industrial unrest in the sector.

A former workers who pleaded anonymity, told newsmen in Lagos that its members have been mobilised through unions to organise a protest in the sector in November.

“We have waited enough as we were laid off since 2010, so steps have being taken to ensure that we were paid as agreed, but unfortunately, we are yet to be paid.

“The BPE in 2018, after agreeing that we were entitled to the several packages, promised to pay us, but four years after this, we are yet to get anything from the bureau.

“They are even asking us to assist them in getting the money out of the Ministry of Finance. How can we do that when we are not the government?” the source said.  

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BPE, group partner on investment opportunities in Nigeria

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The Bureau of Public Enterprises (BPE) says it will collaborate with Jindal Steel and Power Group in its areas of interest to invest in Nigeria.

Jindal and Power Group is a leading world player in Steel, Mines and Infrastructure.

Mr Alex Okoh, Director-General, BPE, said this in a statement issued by Mr Chidi Ibeh, Head, Public Communication, BPE in Abuja on Friday.

Okoh said a joint committee to work out the modalities for the exercise had been set up with the Director, Industries and Services at BPE, Mr Yunana Malo, heading the BPE team.

He said Mr Mukesh Sharma will head the Jindal Steel and Power Group’s team.

Okoh, who spoke while receiving a delegation from Jindal, led by its Vice Chairman, Mr Vidya Sharma, said there was a lot of potentials in the country in areas of interest for the group.

He cited among others, the planned concession of the Zungeru Power Plant which has the capacity to generate about 700 Megawatts when operational.

Okoh said that the Federal Government had already procured the services of a Transaction Adviser for its eventual concession.

The director-general revealed that the planned concession of the Zungeru Dam would be modelled after that of Kainji and Jebba Dams concession and the successful concessionaire would handle it for 30 years.

Speaking on another area of interest for the group, Okoh said that though the three steel rolling companies in the country, Jos, Katsina and Osogbo had been privatised, they were not living up to expectations.

He said that any effort to rev up the sector would be supported.

Okoh also informed the investors that power, which was the group’s main stronghold, had openings in the country as the Federal Government was on the verge of privatising five of its ten National Integrated Power Plants (NIPPs).

According to him, these plants have the combined capacity to generate between 2,300 to 2,500 megawatts.

Okoh said despite the unbundling of the power sector by the federal government in 2013, resulting in 11 Power Distribution Companies and six Generation Companies, the Transmission Company of Nigeria was still being retained by the federal government.

He, however, said plans were underway to unbundle it for more efficiency.

Earlier, Sharma had said the courtesy visit was to allow the group to have firsthand information on areas of investment in Nigeria.

He noted that Nigeria was the largest economy in Africa and his group intended to cash in on the vast potential to invest in Mines, hydropower and other areas of interest.

The group was accompanied on the courtesy visit by Ambassador Ahmed Sule, Nigeria’s High Commissioner Accredited to Bangladesh, Nepal and Sri Lanka.

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BPE, group collaborate on investment opportunities in Nigeria

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The Bureau of Public Enterprises (BPE) says it will collaborate with Jindal Steel and Power Group in its areas of interest to invest in Nigeria.

Jindal and Power Group is a leading world player in Steel, Mines and Infrastructure.

Mr Alex Okoh, Director-General, BPE, said this in a statement issued by Mr Chidi Ibeh, Head, Public Communication, BPE in Abuja on Friday.

Okoh said a joint committee to work out the modalities for the exercise had been set up with the Director, Industries and Services at BPE, Mr Yunana Malo, heading the BPE team.

He said Mr Mukesh Sharma will head the Jindal Steel and Power Group’s team.

Okoh, who spoke while receiving a delegation from Jindal, led by its Vice Chairman, Mr Vidya Sharma, said there was a lot of potentials in the country in areas of interest for the group.

He cited among others, the planned concession of the Zungeru Power Plant which has the capacity to generate about 700 Megawatts when operational.

Okoh said that the Federal Government had already procured the services of a Transaction Adviser for its eventual concession.

The director-general revealed that the planned concession of the Zungeru Dam would be modelled after that of Kainji and Jebba Dams concession and the successful concessionaire would handle it for 30 years.

Speaking on another area of interest for the group, Okoh said that though the three steel rolling companies in the country, Jos, Katsina and Osogbo had been privatised, they were not living up to expectations.

He said that any effort to rev up the sector would be supported.

Okoh also informed the investors that power, which was the group’s main stronghold, had openings in the country as the Federal Government was on the verge of privatising five of its ten National Integrated Power Plants (NIPPs).

According to him, these plants have the combined capacity to generate between 2,300 to 2,500 megawatts.

Okoh said despite the unbundling of the power sector by the federal government in 2013, resulting in 11 Power Distribution Companies and six Generation Companies, the Transmission Company of Nigeria was still being retained by the federal government.

He, however, said plans were underway to unbundle it for more efficiency.

Earlier, Sharma had said the courtesy visit was to allow the group to have firsthand information on areas of investment in Nigeria.

He noted that Nigeria was the largest economy in Africa and his group intended to cash in on the vast potential to invest in Mines, hydropower and other areas of interest.

The group was accompanied on the courtesy visit by Ambassador Ahmed Sule, Nigeria’s High Commissioner Accredited to Bangladesh, Nepal and Sri Lanka.

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BPE explains restructuring of some DISCOs

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The Bureau of Public Enterprises (BPE), says it is necessary to dispel the controversy concerning the recent restructuring following the collateralised shares of some Electricity Distribution Companies (DISCOs).

The Director-General, BPE, Mr Alex Okoh, said this in a statement issued in Abuja on Friday.

Okoh said the BPE considered it imperative to clear the air on the insinuations and statements emanating from some of the DISCOs which were restructured following the collateralised shares of some of the DISCOs.

He said the BPE had earlier informed the public through the media that a call on the collateralised shares of the core investors of Kano, Benin and Kaduna DISCOs had been activated by the lenders.

“BPE and the Nigerian Electricity Regulatory Commission (NERC) were informed by Fidelity Bank on July 5, 2022, that a call on the collateralised shares of the core investors of Kano, Benin and Kaduna DISCOs had been activated by the lenders.

“The lenders’ consortium includes AFREXIM Bank, Keystone Bank, Stanbic IBTC and Fidelity Bank.

“It is important to note that the action is a contractual and commercial intervention and it is between the core investors in these DISCOs and the lenders,” he said.

Okoh said that BPE’s involvement was to protect the 40 per cent shareholding of the Federal Government in the DISCOs.

The director-general said it was on this basis that new boards reflecting the action were constituted.

“The new board members of the affected Kano DISCO are, Hasan Tukur, Chairman, Nelson Ahaneku, and Engr. Rabiu Suleiman are members, while Benin DISCO has K.C. Akuma, as the Chairman, Adeola Ijose and Charles Onwera as members.

“Kaduna DISCO has Abbas Jega as Chairman, Ameenu Abubakar and Marlene Ngoyi as members.”

Okoh said BPE had nominated Bashir Gwandu (Kano), Yomi Adeyemi (Benin), and Umar Abdullahi (Kaduna) as independent directors to represent the government’s 40 per cent interest in the three DISCOs during the transition.

He said as the agency representing the interest of the Federal Government in the DISCOs, BPE had already engaged with the Central Bank of Nigeria (CBN) (as the banking sector regulator) for an orderly transition.

“Also to ensure that the lenders do not hold the collateralised shares of the core investors in perpetuity given that they do not have the technical capacity, nor have they been duly authorised to operate an electricity distribution company.’’

Okoh said that the lenders had also assured BPE and NERC that they would participate fully in all the on-going market initiatives aimed at improving the sector, such as the national mass metering programme.

According to him, it is envisaged that the majority interest in these DISCOs will be sold to competent private sector investors with the requisite technical and financial capacity to re-capitalise and manage these entities efficiently.

Okoh said as an interim measure, NERC and BPE met on an emergency basis and activated the Business Continuity Process and appointed interim Managing Directors in the affected DISCOs.

They are Kano DISCO, Ahmad Dangana, Benin DISCO, Henry Ajagbawa, and Kaduna DISCO, Yusuf Usman Yahaya.

“It must be reiterated that some of the publications from the core investors of these DISCOs have been quite disingenuous.

“Beyond the financial issues I have just discussed, the DISCOs affected happen to be the worst-performing ones.

“Ibadan is currently being managed by a so-called Receiver Manager as a sole administrator.

“The Receiver Manager has absolutely no capacity to manage a utility and has not been authorised by the regulator as a manager of a DISCO.’’

According to him, Ibadan is the worst performing DISCO as per the Performance Assessment review conducted in December 2021.

The director-general said Ibadan DISCO had retrogressed in terms of their critical performance parameters as contracted in the Performance Agreement signed with the Bureau.

“In fact, the DISCO under the management of the Core Investor, Integrated Energy Distribution and Marketing Limited (IEDM), has performed worse than before it was privatised.”

He said that the performance of Benin, Port Harcourt, Kano and Kaduna DISCOs had also been abysmal.

“It is necessary to state categorically that the poor performance of these DISCOs represents a clear and present threat to the power sector as a whole.

“No responsible government and shareholder will stand idly by and allow this situation to persist.’’

Okoh assured Nigerians that notwithstanding the challenges in the sector, the government remained fully committed to ensuring optimal performance in the power sector.

According, the government will also not shy away from taking the necessary decisive action to achieve this.

BPE

BPE to support Nigerian correctional service on PPP projects  

Mr Alex Okoh, the director-general, Bureau of Public Enterprises (BPE), says the Bureau is willing to deploy its expertise to support the Nigerian Correctional Service (NCoS).  

Okoh said this in the bureau’s efforts to develop some projects through Public Private Partnership (PPP).  

This is contained in a statement issued by Mr Ibeh Chidi, the Bureau’s Head of Public Communications in Abuja on Thursday  

Chidi said the Director-General said this when he visited the Comptroller- General (C-G) of NCoS, Haliru Nababa, at the NCoS Headquarters in Abuja.  

Okoh said the projects include cattle ranching and dairy processing factories in three states, Sokoto, Kano and Imo; agricultural farms in many states of the federation; industrial entities and the correctional centres’ land swapping projects.  

According to the director-general, BPE has more than 30 years of experience in the reform and optimisation of the Federal Government’s assets through different strategies including concession.  

“Coupled with the additional responsibility that has been assigned to us in the PPP space through the Federal Government’s policy Circular on the Administration of Concession in Nigeria, BPP is ready to collaborate with the service actively.  

“We will do this by offering our technical expertise and experience to ensure the successful execution and completion of the concession process for the projects.”  

Okoh commended the commitment and efforts of the C-G and his team toward repositioning the NCoS into a strong, reliable and transformative institution through some of the laudable initiatives and projects being implemented under his leadership.  

“The feedback from the bureau team’s interfacing with the NCoS on the level of professionalism, commitment and desire of the NCoS’ PPP Unit has been encouraging.”  

He said the unit had shown commitment to ensuring that some of the potential projects of the service across different sectors of the economy were developed and optimised.  

Okoh said that the recent opening of responses to the Request for qualifications issued by the service for some of its projects was a testimony to NCoS readiness and commitment to unlock values and optimise the potential of those assets.  

In his response, the C-G, represented by the Deputy C-G, Operations (Non-Custodial Duties), Mohammed Tukur, commended the bureau for its support and guidance in the success of its PPP projects.  

The C-G Nababa said these projects include relocation/infrastructural development, agricultural development and industrial projects.  

He recalled that the projects were dear to the NCoS as they would transform and strengthen the institutions of the NCoS because of their potential to unlock value of the service and the Federal Government.  

The C-G solicited the cooperation of the bureau in other areas that would add value to the service as the “mandate of BPE cuts across all agencies in the country”.  

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BPE frees 3 privatised firms from its monitoring activities

The National Council on Privatisation (NCP) has approved the delisting of three privatised enterprises from routine monitoring activities of the Bureau of Public Enterprises (BPE).

This was disclosed in a statement issued on Sunday in Abuja, by Ibeh Chidi, Head, Public Communications of the BPE.

According to him, the said companies are Federal Superphosphate Fertiliser Company (FSFC), Kaduna, Cement Company of Northern Nigeria (CCNN) Sokoto and Ikoyi Hotel (now Southern Sun) Lagos.

He said that the companies were delisted after they fulfilled their covenants as identified in the Key Performance Indicators (KPIs) contained in the Share Sale and Purchase Agreement (SSAP) signed with the BPE.

“Their delisting followed a request by the BPE to the NCP for approval at its maiden meeting for year 2022.

“In its request, the bureau noted that it had carried out a review of the enterprises in line with BPE’s mandate to manage post-privatisation issues of privatised public companies and was satisfied the core investors had ensured compliance with the covenants.

“BPE stated that it had developed standard processes and procedures for delisting privatised enterprises which all privatised enterprises were bound to comply with before being recommended for delisting.”

Chidi said that in assessing the now delisted enterprises, BPE said it reviewed all the data submitted by the core investors in line with their KPIs as indicated in the SSPA.

It also followed up with an on-the spot assessment of the companies to validate the data submitted which showed excellent performance.

The statement recalled that FSFC was incorporated in September 1973 with an installed capacity of 100,000 metric tons per annum and privatised in 2005.

It was, however, handed over to the core investor, Messrs HEIKO Consortium in January 2006.

He said that Ikoyi Hotel was established in 1932 and owned 100 per cent by the Federal Government.

“It was privatised through assets sale to BETA Consortium Limited with a bid price of 13.86 million dollars and handed to the investor in 2003.

“CCNN, Sokoto was commissioned in 1967 with the Federal Government owning 45 per cent shares of the company.

“In 2000 the Federal Government shares were divested through a strategic core investor sale/Initial Public Offer.

“During its privatisation, an already existing shareholder and technical partner to CCNN, ScanCem/Dammnaz International Limited emerged as the core investor of the company.”

He added that in 2010, the company was acquired by BUA international.

The bureau said that the delisted enterprise would be presented with their discharge certificates later.

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