16 Percent of Nigeria Privatised Companies Are Non Performing

The Bureau of Public Enterprises (BPE) has inaugurated four committees to review and implement a strategic roadmap for the resuscitation of ailing enterprises in the country.

The burea had disclosed that 16 per cent of the privatised public companies are non performing. 

The Bureau of Public Enterprises (BPE) is the Federal Government agency tasked with implementing the government’s privatisation programme. BPE serves as the Secretariat to the National Council on Privatisation (NCP).

The committees known as Technical Working Groups (TWGs) have been tasked to analyse and examine the sectors and develop a comprehensive five-year (2023–2027) turnaround programme for each of the non-performing enterprises. 

While inaugurating the committees in Abuja, the Director General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh 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).

Some of the non-performing businesses are scattered in different sectors which include automobile, mines and steel, housing and oil palm sectors. 

Mr Alex Okoh further stated that the inauguration was a culmination of the efforts of various stakeholders which started in 2018, to revive non-performing privatised enterprises in the country.

Also speaking during the inauguration, the Director, Post-Transaction Management at the BPE, Mr. Toibudeen Oduniyi,  urged the members of the committees to contribute their wealth of experience and expertise for  the actualisation of the much-desired revitalisation of the non-performing Enterprises for the economic growth of the country.

The term of reference given by the Technical Working Group includes a diagnostic study on the ailing enterprises in order to identify their current status (operational and financial positions), a critical study to understand their term of ownership, share structure and capacity utilisation. 

The committee is also mandated to prepare a business plan that meets the current sectoral requirements, and to examine the challenges in the sectors.