The Federal Government has announced a road map to review and implement strategies for the resuscitation of ailing enterprises in Nigeria.
This was disclosed in a statement by the Head, Public Communication, Bureau of Public Enterprises (BPE), Chidi Ibeh, in Abuja on Monday, according to the News Agency of Nigeria.
The BPE Director-General, Alex Okoh, inaugurated the four Technical Working Groups (TWGs) to review the roadmap for the FG. He noted that 16% of the privatized companies were non-performing
What the BPE is saying
The BPE Chief noted that the TWGs were inaugurated for the Automobile, Housing (Bricks and Clay), Mines, and Steel as well as Oil Palm sectors.
He said the initiative was in consonance with the ease of doing business in Nigeria and in line with the Federal Government’s Economic Recovery and Growth Plan (ERGP).
OKoh added that the event was a culmination of the efforts by various stakeholders which started in 2018 to revive non-performing privatized enterprises in the country, citing that the BPE in discharging its supervisory duties on privatized enterprises through the instrumentality of Result-Based Monitoring and Evaluation (RBME), discovered that about 16% of the privatized companies were non-performing.
“Hence the result of the finding was submitted to the National Council on Privatisation (NCP) in 2018 and to the Senate Committee on Privatisation in 2020.
“This led to a meeting of the relevant stakeholders in the ailing enterprises held in July 2018,” the director-general said.
Okoh said the Terms of Reference (TORs) for the Working Groups include:
“Conduct a diagnostic study on the enterprises to identify their current status (operational and financial positions) and conditions in terms of ownership, share structure, and capacity utilization.
“Prepare a business plan that meets the current sectoral requirements; examine the challenges in the sectors; and develop a comprehensive five-year, (2023-2027) Turnaround Programme for each of the non-performing enterprises.
“Review and advise the Federal Government on the processes and implementation of the Turnaround Programme and determine the potential and economic viability of the sectors, amongst others.”
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What you should know
- Nairametrics reported last month that Director-General of the Bureau of Public Enterprise, Mr. Alex Okoh announced that it has successfully completed the takeover of struggling distribution companies, including Kaduna, Kano, Ibadan, and Port Harcourt DISCOs
- The DisCos were forced under new management over poor debt management issues