Tuesday, October 15, 2013

Nigeria going through biggest privatization phase in it's history

With over $3 billion proceeds from the privatisation of the 18 successor companies of the Power Holding Company of Nigeria (PHCN), Nigeria may have recorded the biggest ever privatisation transaction in global history.

The Director-General of the Bureau of Public Enterprises (BPE), Benjamin Dikki, gave the score sheet, in a keynote presentation to “The Nigeria Investors’ Summit” held in New York, United States of America, last week.

He noted that the Nigerian Government has been consistent in its policy to open up its economy and create the enabling environment for the private sector to thrive.

Dikki added that the present administration, in particular, has gone the extra mile in its efforts to create an environment conducive to attract private sector investments in infrastructure

He noted that the reform initiatives that were so far implemented by the Federal Government had worked; urging prospective investors to take an informed decision, as the upcoming reform initiatives would work.

He enthused that the world was waking up to the most attractive investment haven in the world – Nigeria— urging the investors that had missed the last tranche of investment opportunities, not to miss the next ones.

The Director-General said the first in the long list of upcoming opportunities are in the telecommunications and the transport sectors, stating that the NITEL and its frequencies are still available for sale in a guided liquidation process that will commence soon.

In the transport sector, he said that the railway, National Inland Waterways, Ports and Harbour, and National Transport Commission bills were ready and soon to be sent to the federal legislature for passage.

He revealed that the reforms in the housing sector had equally reached advanced stages; adding that with over 18 million housing deficit in the country, the Federal Government had made the reforms in that sector a priority.

The privatisation helmsman said the Bureau, in collaboration with key stakeholders, is currently reviewing the policies, legal and regulatory framework to attract private sector investments in the sector.

Said he: “We will harness the warehouses and silos all over the country and link them up to the trading platform for Warehouse Receipt Trading system. Once we make prices and buyers predictable, we have a mega boom in the making.”

Dikki said the planned reform in the Development Finance Institutions (DFIs) will commence with the privatization of Bank of Industry (BOI) and Bank of Agriculture (BOA).

He noted that on the reforms in the tourism sector, the BPE has begun the review of the policy, legal and regulatory frameworks for the sector to attract private capital into this tourism gold mine

He alerted the investors interested in the Oil and Gas sector that when the Petroleum Industry Bill (PIB) is passed, the Refineries will be available for privatization; adding that the network of oil and gas pipelines will also be available for concession.

Written by Roseline Okere


No comments:

Post a Comment