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FG to investigate why privatized companies are not performing

Alex Okoh, FG stops privatization of refineries, describes Ajaokuta Steel’s problem as complex

The Federal Government through the National Council on Privatization (NCP) has directive the Bureau of Public Enterprises (BPE) to investigate why the privatized enterprises have been unable to perform.

The action is coming as the Federal Government has been identified as having the political will to resuscitate these ailing and non-performing privatized enterprises in the country.

According to a statement issued on Friday by BPE’s Head of Public Communications, Amina Othman, this disclosure was made by the Director-General of BPE, Mr Alex Okoh, when he received the report of the Federal Government’s 4 inter-agency committees on the resuscitation of ailing and non-performing privatized enterprises in the country.

According to NAN, Okoh said that the affected enterprises which were privatized about 10 years ago in the automobile sector, bricks and clay (housing) sector, oil palm sector, mines and solid minerals sector and others failed to meet the aim of privatization and reform programme of the Federal Government.

He said that the BPE is also expected to proffer viable and acceptable solutions to resuscitating them to perform optimally, create employment, boost the economy and increase Gross Domestic Product (GDP) among other benefits.

He assured of BPE’s commitment to collaborate with relevant agencies to resuscitate and bring to life the moribund enterprises.

While commending the wealth of experience, expertise, commitment, diligence and intellectualism exhibited by the members in the course of carrying out their assignment, the BPE boss expressed optimism that the outcome would bring the desired solution to the non-performing privatized enterprises.

He said, “Hence the government through the National Council on Privatization (NCP) directed the BPE to investigate the cause(s) for their inability to perform.

“Also to proffer viable and acceptable solutions to resuscitating them to perform optimally, create employment, boost the economy and increase Gross Domestic Product (GDP) among other benefits.”

He assured that the findings of the committees would be shared among all stakeholders in order to spur them to meet their organisational objectives and that of the Federal Government’s privatisation and reform programme.

What you should know

The privatization policy was introduced with the promulgation of decree 25 by the then federal military government in 1988, due to the inefficiencies, massive corruption, nepotism, gross mismanagement that characterized public enterprises which led to their collapse.

The BPE had in February 2018, said that 37% of privatized government enterprises were not performing.

The BPE had on March 23, inaugurated the 4 committees to help resolve the complexities and challenges hindering the growth and development of some privatised enterprises.

The committees were made up of members drawn from the relevant sectors, ministries, BPE and the private sector.

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