Toba Owojaiye reporting
Abuja , Nigeria
In a strategic move to generate funds for the 2024 budget, the Bureau of Public Enterprises (BPE) is set to offer 40% stakes in Eleme Petrochemicals Company Limited (EPCL), Nigeria Re-Insurance, Nicon Insurance, Electricity Distribution Companies (Discos), and Nigeria Machine Tools in Osogbo through Public Offerings (IPO) in the capital market.
BPE, having already sold 60% equity to core investors, aims to capitalize on the privatization momentum, which, according to Mr. Alex Okoh, the Director-General of BPE, has gained significant traction in the past six months.
Truth Live News gathered that Mr Okoh emphasized the success of the privatization ideology under the current administration, noting President’s efforts in seeking Foreign Direct Investments (FDI) and creating an attractive environment for investments. He highlighted the competitive advantage this brings to the international investment market, making a strong case for potential investors to explore opportunities in Nigeria.
Discussing BPE’s plan, Okoh confirmed the intention to sell the government’s 40% remainder stakes in 2024 through IPO in the capital market. The strategy involves addressing ownership challenges with some Discos before proceeding with the sales. Besides Discos, Eleme Petrochemicals, Nigerian Reinsurance, Nicon Insurance, and Nigeria Machine Tools in Osogbo are also slated for the capital market, presenting an ambitious agenda for BPE in 2024. Challenges with core investors, such as Jimoh Ibrahim in Nicon Insurance, have been acknowledged, indicating the complexity involved in bringing these entities to market.
To facilitate effective reforms, sales, and post-privatization assessments, the federal government has allocated a budget of N2.4 billion to BPE in the 2024 fiscal year. The breakdown includes N1.4 billion for personnel costs, N8244.8 million for salaries and wages, N575 million for allowances and social contributions, and N80 million for training. This financial support reaffirms the government’s commitment to the success of BPE’s initiatives and its dedication to advancing privatization and economic reforms.
As BPE gears up for an active 2024, the Director-General emphasized the importance of public education and stakeholder engagement to navigate challenges successfully.