The Bureau of Public Enterprises (BPE) has announced plans to divest the Nigerian government’s stake in Eleme Petrochemicals Company Limited (EPCL), Electricity Distribution Companies (DisCos), Nigeria Reinsurance, Nicon Insurance, and Nigeria Machine Tools in Osogbo. The aim is to generate funds to partially finance the 2024 budget. The Director-General of BPE, Alex Okoh, unveiled this plan during a media chat held in Abuja.
Expressing confidence in the privatisation drive under the current administration, Okoh highlighted the government’s commitment to attracting Foreign Direct Investments (FDI) and creating an enabling environment for local and foreign investments to thrive in Nigeria. He emphasized the agency’s intention to use Initial Public Offerings (IPO) to divest the government’s 40% stake in the aforementioned entities through the capital market.
Okoh acknowledged some challenges in the ongoing privatisation process, particularly related to the ownership of some Discos, but remained optimistic about the strategy. He also mentioned the plan to address these challenges before proceeding with the divestment process.
Looking ahead, Okoh projected a more active year for the BPE in 2024, with a continuous focus on educating the public and addressing stakeholder concerns with transparency and accountability.
Reacting to the development, Wumi Iledare, Professor Emeritus and Executive Director of the Emmanuel Egbogah Foundation, commended the initiative while stressing the importance of ensuring that the divestment process upholds technical and financial competence in a transparent, competitive, and accountable manner.
The BPE’s move to divest government stakes in key entities reflects Nigeria’s commitment to attracting investments and driving economic growth. As the country prepares for this significant shift, the transparency and efficacy of the divestment process will be closely scrutinized to ensure a positive outcome for both the government and potential investors.
