FG Set to Privatise 91 Government-owned Assets, Including Refineries, Airports, Others
- The federal government plans to privatise or lease 91 state-owned enterprises, including key assets like refineries, airport terminals
- The DG of BPE emphasised that each transaction will be based on detailed feasibility studies to determine value and structure
- Past reforms in sectors like telecoms, pensions, ports, and aviation have already boosted investment, efficiency, and economic growth
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The federal government has announced plans to either privatise or lease out 91 government-owned businesses.
These include major assets like the Ajaokuta Steel Company, Tafawa Balewa Square, Lagos Trade Fair Complex, the country’s four refineries, and five international airport terminals.
Source: UGC
The director-general of the Bureau of Public Enterprises (BPE), Mr. Ayodeji Ariyo Gbeleyi, made this known in Abuja.
Gbeleyi said:
“There are 91 public enterprises that are still outstanding within the purview of the Public Enterprises Act. You may want to know the estimated values and why we want to sell."
The director-general explained that out of the 91 government-owned companies set for privatisation or commercialisation, 16 are in the oil and gas sector, including refineries and storage depots. He, however, did not mention specific names.
He said that 12 of the companies are in agriculture, 20 in aviation, and 28 fall under various other public sectors. The rest include businesses in mining, steel, transport, eco-tourism, and two agencies linked to the Federal Capital Territory Administration.
Gbeleyi also stated that 35 of the companies will be fully privatised, while 57 will be partially privatised. However, he did not mention which companies fall into each group.
Privatisation to go through smooth process
Gbeleyi said that each transaction will go through a careful and transparent process, involving experts in finance, law, and technical matters.
He explained that every enterprise will be handled one at a time, based on its sector. For instance, any changes to the airport terminals will involve the Ministry of Aviation. Before anything is finalised, studies will be done to find out how much value can be gained from each asset.
Mr. Gbeleyi made it clear that the BPE will not just guess the value of any business. Instead, professionals will be hired to carry out proper assessments.
These include financial advisors to review the numbers, legal experts to verify regulations, and technical consultants to understand how the business operates.
He compared the process to listing a company on the stock exchange, where investment bankers, lawyers, and other experts collaborate to determine the value. According to him, only after this process can the government know what to expect from each deal.
By privatising or leasing these state-owned businesses, the government hopes to attract new investments, improve efficiency, and unlock more value in key sectors of the economy.
Source: UGC
PETROAN slams NNPC's decision on PH refinery sale
Meanwhile, Legit.ng earlier reported that the Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN) criticised the NNPC for its decision not to sell the PH Refinery.
Dr. Joseph Obele, the national PRO of the association, emphasised that privatisation would improve resource management, government revenue, and the quality of petroleum products.
Obele called on President Bola Tinubu to intervene and privatise the refinery, assuring full cooperation from the host community.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
