• Wednesday, July 24, 2024
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16% of Nigeria’s privatised companies are non-performing – BPE

16% of Nigeria’s privatised companies are non-performing – BPE

Sixteen percent of state-owned enterprises privatised by the Federal Government are non-performing a development that has led to the inauguration of technical working groups to attempt to revive them, said the Bureau of Public Enterprises (BPE).

The four Technical Working Groups (TWGs) namely Automobile, Housing (Bricks and Clay), Mines and Steel, and Oil Palm sectors, will review and implement a strategic roadmap for the revival of ailing enterprises in the country, the BPE said.

Alex Okoh, director-general, who was represented by Ignatius Ayewoh, director, Agriculture, and Natural Resources, said the initiative is in consonance with the ease of doing business in Nigeria and in line with the Federal Government’s Economic Recovery and Growth (ERGP).

The BPE started the review in 2018 aimed at reviving non-performing privatised enterprises. 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

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In keeping with the objective, the technical working groups have been created to conduct a diagnostic study on the enterprises.

Their remit would be to identify the enterprises’ current status (operational and financial positions) and conditions in terms of ownership, share structure, and capacity utilisation.

They will also prepare a Business Plan that meets the current sectoral requirements and examine the challenges in the sectors and develop a comprehensive five-year from 2023 to 2027 turnaround programme for each of the non-performing enterprises.

The TWGs will also 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. Among others.

Also speaking at the event, Toibudeen Oduniyi, director, of post-transaction management at the BPE urged the members to contribute their wealth of experience.

He also urged them to contribute expertise for the actualisation of the much-desired revitalisation of the non-performing Enterprises for the economic growth of the country.