Transcript portland oregon job security

A PRESENTATION TO MEMBERS OF “JUST FRIENDS CLUB OF
NIGERIA”
AT ITS MAIDEN ANNUAL LECTURE
ON
“THE FEDERAL GOVERNMENT’S PRIVATIZATION AND ECONOMIC
REFORM PROGRAMME”
BY
MR. BENJAMIN EZRA DIKKI,
DIRECTOR-GENERAL
JUNE 27, 2014
1
Outline

Establishment of PEs

PEs’ Performance

Reviewing Government’s Involvement in Business

Establishment of the BPE

Privatization Policy Objectives

Privatization Strategies

Enterprises Privatized from Inception to Date

Gains of Privatization

Impact of Some privatized Enterprises on the Capital Market

Summary of Results
2
Outline Contd…
Reforms
 Objectives of Reforms
 Reform Implementation Sequence
 Reforms Carried out
 Impact of Reforms on the Economy
 Outstanding Reforms Bills
 On-going/outstanding Transactions
 Conclusion

3
Introduction: Establishment of PEs


At Independence, the FGN’s economic development strategy
was anchored on the “commanding Heights” economic theory:
Government was the chief driver of economic growth. That gave
rise to an abnormally large public sector.
In the 1960s up to the early 1970s, active state participation in
economic activities and nationalization of public utilities was
considered the route to development due to the following
reasons; :
the state was seen as the chief instrument for the promotion
of economic growth and industrial advance.
Import substitution drive: Government established many
commercial enterprises to reduce the levels of imports
Perception then that the private sector was weak and not
capable of driving economic growth
4
Introduction: Establishment of PEs Cont.



After the civil war that ended 31st January 1970, the
Nigerian Government pursued a
“Reconciliation,
Reconstruction and Rehabilitation” policy, equivalent to
the George Marshall Plan of 1948 -1952.
This policy aided by oil price boom of the early 1970s saw
government building massive industrial and infrastructural
facilities in Nigeria.
Billions of Naira went into construction of refineries,
steel plants and rolling mills, establishment of
development/industrial
banks,
oil
companies,
telecommunications
companies,
electricity
plants,
airports, sugar companies,
5
Introduction: Establishment of PEs Cont.




Cement companies, paper mills, fertilizer plants, glass
industries, breweries, railways, river basin development
authorities, dams, shipping lines etc.
These were managed as government owned companies and
enterprises.
This huge government direct investment in the Nigerian
Economy was soon followed by an attempt to indigenize
the economy
In 1972, the government enacted the Indigenization
Decree which stipulated increased participation of
Nigerians in companies/enterprises.
6
Introduction: Establishment of PEs Cont…


Arising from this economic philosophy and
huge oil revenue, the government established
PEs in every sector
Over $100billion was invested to create over
600 ventures
7
PEs’ Performance

Although
they
employed
less
than
500,000
workers, they created over 5,000 board seats

Substantial part of non-performing debts owed to
the London and Paris Clubs were loans to PEs

Yet workers were owed salaries, with huge pension
liabilities about (N2 trillion).

PEs
consumed
over
$3billion
annually
as
subventions, subsidies, etc
8
PEs’ Performance Contd.

Tax deductions at source (PAYE, VAT and Company
Income
Tax)
were
not
remitted
to
the
tax
authorities.

Despite legalised monopolies, subsidies, exemptions,
privileges, treasury support, PEs in Nigeria failed to
yield dividends or service
9
Reviewing Government’s Involvement in
Business



The twin policies of government direct investment
in the Nigeria Economy and an attempt to indigenize
the economy did not produce the desired economic
result
Publicly ran enterprise could hardly break-even and
became a huge burden on government budget which
was then seriously affected by falling crude oil
prices in the early 1980s.
Nigeria’s economy experienced, “declining growth,
increasing unemployment, galloping inflation, high
incidence of poverty, worsening balance of
payments, debilitating debt burden and increasing
unsustainable fiscal deficits…”
10
Reviewing Government’s Involvement in Business
Cont.

Disenchanted with poor performance of PEs. the FGN
commissioned several studies:
• Adebo (1969)
• Udoji (1973)
• Onosode (1981) and
• Al-Hakim (1984)
 Findings: PEs were inefficient, corrupt, misuse
monopoly powers, depended heavily on treasury, had
defective capital structure, and suffered incessant
political interference, etc;
 In 1985, a Presidential Study Group to review the 1984
Committee report was set up.
 The main conclusion of the Committee was the need
for radical measures to be taken to solve the
problems of the PEs
11
Reviewing Government’s Involvement in Business Cont.



Government policies began to respond to the realities on
ground
It was in the light of the fore-going that President Shehu
Aliyu Shagari introduced the Economic Stabilization Program
popularly called Austerity Measures in April 1982.
These measures were continued till 1985 when General
Ibrahim Babangida took over and introduced the Structural
Adjustment Program (SAP) in June 1986. Its cardinal
objective was to:
“restructure and diversify Nigeria’s productive base, through
the rationalization and restructuring of public enterprises
and overhauling of the public sector administrative
structure”.
12
Reviewing Government’s Involvement in
Business Cont.



These were the prelude to the enactment of the
Privatization and Commercialization Decree No. 25
of July 1988 and the inauguration on 27th July, 1988
of the Technical Committee on Privatization and
Commercialization (TCPC).
TCPC implemented the First phase of the privatization
programme (1988-1992).
The National Council on Privatization (NCP) and the
Bureau of Public Enterprises (BPE) have been
implementing subsequent Phases (1999 to 2007) and
the current Goodluck/Sambo Transformation Agenda
(2007 to date).
13
Establishment of BPE: Enabling Law
The
Public
Enterprises
(Privatisation
Commercialisation) Act 1999 established:
• The National Council on Privatisation (NCP)
• The Bureau of Public Enterprises (BPE)
The NCP:
• Determines
political,
economic
objectives of the programme
• Approves policies
• Approves public enterprises to be
commercialised
• Issues directives to BPE
and
and
social
privatised
The BPE:
• Implements Council’s policies and directives
• Responsible
for
implementing
the
privatisation and commercialisation activities
or
day-to-day
14
Privatization Policy Objectives


A former President succinctly stated the privatisation
policy at the inauguration of NCP on 28th August, 2008, as
thus:
“Privatisation permits governments to concentrate
resources on core functions and responsibilities of
governance, promoting markets to work efficiently, with
provision of adequate security and basic infrastructure,
as well as ensuring access to key services like
education, health and environmental protection”
This same policy objective informed the privatization
exercises that took place in Western Europe, UK, Latin
America and other Emerging Markets.
15
Privatisation Policy Objectives Cont.

The privatization programme is a key aspect of Government’s
Economic Reform programme as enshrined in the FGN’s
Transformation Agenda.

It is designed to:
Diversify the economy;
Strengthen the private sector as Nigeria’s engine of
growth and economic driver;
Assist in restructuring the public sector in a manner that
will effect a new synergy between a leaner and more
efficient government and a revitalised, efficient and
service oriented private sector;
Ensure government concentrates resources on
core
functions and responsibilities of governance;
16
Privatisation Policy Objectives Cont.
◦ To improve efficiency and reduce waste in the public
sector;
◦ Modernize technology in our industries;
◦ Dismantle monopolies and service arrogance;
◦ Reduce debt burden and fiscal deficits;
◦ Resolve massive/perennial pension gaps;
◦ Promote transparency in corporate governance, and
◦ Attract foreign direct investments.
Through:
◦ Promotion of competition;
◦ Enthronement of sound corporate Governance in public
and private sector, and
◦ Institutionalization of social accountability and efficient
use of public resources
17
Privatization Strategies

The Act provides various strategies for carrying
out privatisation. These include:
◦ Public Offering
◦ Private placement of shares
◦ Core Investor sale
◦ Concession
◦ Sale by willing seller/willing buyer
◦ Sale of Assets, and
◦ Liquidation
Privatization Strategies Contd.

Usually, BPE recommends an appropriate sale strategy to NCP
for approval, taking cognisance of the peculiarities of each
transaction.

Privatisation transactions go through series of open and
transparent stages of due process comprising:
◦ Advertisement for Advisers and Core Investors
◦ Due diligence by bidders
◦ Due diligence on bidders
◦ Painstaking Evaluation of Technical bids
◦ Public opening of Financial Bids with live media coverage
20
21
22
23
24
25
26
27
Transactions handled Cntd
28
29
GAINS of Privatisation
 No
treasury allocation to privatised PEs –drain pipe
plugged
 Proceeds
utilised
for
other
socio-economic
objectives
 New
operators pay corporate taxes
 New
owners are investing heavily: e.g. Ports,
Fertilizer companies, Oil marketing companies and
Cement plants, etc

Neglected and under utilised assets being more
efficiently utilised
GAINS of Privatisation Cont.
 Eleme
petrochemical
Company
revitalised
and
producing at over 90% capacity
 Cement
Companies have been revived, expanded and
made profitable:
Cement Company of Northern
Nigeria, Benue Cement Company, Ashaka Cement
Company, West African Portland Cement Company
 Banking
sector completely revolutionized: no more
tally numbers
 Insurance
companies have been transformed
GAINS of Privatisation Cont.

Oil services companies, such as Oando, ConOil, etc have
expanded and are now profit driven

Nigerian Truck Manufacturing company that was shut down is
back and producing

Agro- allied sector: Notore (NAFCON), Okomu Oil Palm, Sugar
companies
like
Savannah
Sugar
Company,
etc,
are
now
operational

NAHCO that was moribund has more than tripled its share value
since privatisation

Federal Palace Hotel that was dilapidated, is now functional and
expanding

Remarkable improvement in investments and Ports operations
IMPACT OF SOME PRIVATISED ENTERPRIZES ON THE
CAPITAL MARKET
33
Summary Of Results
 From 1999 to 2012, 122 enterprises were privatized
◦ The sum of N251.5 billion was realized as gross proceeds and over
N147 billion (net) was remitted to the Privatization Proceeds
Account with the CBN.
◦ 66% of the privatized enterprises are performing well as against
34% that are not doing well
◦ The preferred bidders for 15 out of the 18 successor companies
(SCs) of PHCN have paid their full bid prizes amounting to
approximately $2.5 billion, while labour benefits amounting to
over N384 billion were settled before the companies were handed
over to the new core investors on November 1, 2013.
◦ Kaduna Disco and Afam Genco transactions that were
unsuccessful during the first sale are now nearing conclusion,
while the NIPPs sale process is moving on smoothly towards34
conclusion later in the year.
REFORMS
35
OBJECTIVES OF REFORMS

The over-riding objective of reforms is to create an
enabling environment for private sector investments
through:
 Institution of sound sector policies
 Liberalization of the sector by abrogating monopoly laws
 Delineation of the roles of policy formulation from
regulation and operations
 Establishment of Appropriate Legal and regulatory
framework
 Setting up of Independent Regulators
 Mitigation of risks to encourage private sector
investments
36
Reforms Implementation Sequence
 Comprehensive diagnoses of Sector problems
 Sector stakeholder engagement and sensitisation
through seminar, workshops, etc






Identification of the key issues and drivers of
the sector
Draft sector policy
Prescription of appropriate legal and regulatory
frameworks
Approvals of the policy and legal framework by
NCP and FEC
Enactment of bill by NASS
Implementation
37
REFORMS CARRIED OUT
POWER SECTOR REFORMS
38
Nigeria on the World Power Scale
Country *
S. Africa
Egypt
Nigeria
Ghana
USA
Germany
UK
Brazil
China
India
Indonesia
Generation
Capacity (GW)
40.498
20.46
5.96
1.49
977.06
120.83
80.42
96.64
623.56
143.77
24.62
Watts per capita
826
259
40 (25 available)
62
3,180
1,468
1,316
486
466
124
102
Sources:
•
World Fact book - http://www.cia.gov/library/publications/the-world-factbook/index.html
*
Energy Information Administration – www.eia.doe.gov
Power Sector Status Before Reforms
By 1999, the Nigerian electric power sector reached, perhaps,
its lowest point in its 100 years history with the following
statistics:
 Of the 79 generation units in the country, only 19 units
were operational.
 Average daily generation was 1,750 MW.

No new electric power infrastructure was built between
1989-1999. The newest plant was completed in 1990 and
the last transmission line built in 1987.

An estimated 90 million people were without access to
grid electricity.

Accurate and reliable estimates of industry losses were
unavailable, but were believed to be in excess of 50%.
40
Objectives of Power Reform

The need for improvement in the efficiency of
the distribution, generation and transmission
network

The need to provide our people with the basic
and affordable infrastructure to enable them
create employment for themselves.
41
POWER SECTOR REFORM TOOLS
 Power Sector Policy, 2001; Aimed at ensuring electricity supply by
creating a conducive investment environment for private sector
investment and managerial expertise
 Investor friendly Power Sector Reform Act enacted in 2005
 Breaking the Monopoly: Introduction of a competitive electricity
market
 PHCN unbundled into six generating companies; eleven distribution
companies & one transmission company (6-1-11 configuration).
 18 successor companies corporatized and assets, liabilities and
employees of PHCN transferred to the successor companies
 Privatization and concession of the Successor Companies.
 Regulator: NERC established in 2006
42
Reform tools Contd.

Securitisation arrangement is ongoing to mitigate
financial and regulatory risks;

The Nigeria Electricity Bulk Trading Company Plc
(NBET) & the Nigerian Electricity Liabilities
Management
Company
(NELMCO)
have
been
established and capitalised to stabilize the market in
the interim for 5 to 7 years;

NELMCO to absorb legacy liabilities and stranded
assets as the PHCN SCs were companies sold debt
free.
43
Design of the Nigerian Electricity Market
Nigeria adopted the wholesale completion model as its long
run market design
The Nigerian electricity market is expected to evolve
through the following stages:

PRE –TRANSITIONAL STAGE (Where we are today)
This is characterized by higher demand than supply.

TRANSITIONAL STAGE (Where we are about to move
into)
 Demand will be higher than the supply.
 All trading is transacted through contracts -vesting
contracts
44
Design of the Nigerian Electricity Market
Contd.
The conditions and prices of vesting contracts are
negotiated and influenced by market forces.
 Transparent and competitive negotiation mechanisms
for entering the market (new PPAs)


MEDIUM TERM STAGE
 There is no restriction (competition) in entering the
market.
 There is competition in supplying the market with
power.
 Contracts will be negotiated based on market forces
45
Design of the Nigerian Electricity Market Contd.

There will be a centralised Merit Order Dispatch by
the System Operator, where Generators must
submit the dispatch nomination (availability,
constraints, costs / prices) which will be guided by
(least cost) dispatch.

LONG TERM STAGE
Similar to the medium term stage but characterized
by more competition and greater freedom by eligible
consumers to choose their suppliers
46
Current AT&C losses and purchasers Obligation to reduce
losses
P
Successor
Company
Abuja
Benin
Eko
Enugu
Ibadan
Ikeja
Jos
Kano
Port Harcourt
Yola
Bidder
Kann
Vigeo
West Power & Gas
Interstate
Integrated
NEDC
Aura
Sahelian
4Power
Integrated
Opening Loss
35.00%
40.00%
35.00%
35.00%
35.00%
35.00%
40.00%
40.00%
40.00%
40.00%
5 Year
Remaining
Loss Level
12.78%
12.19%
12.76%
6.70%
12.71%
9.99%
18.09%
13.02%
14.90%
17.34%
Disco ATC&C
Relative Target (%
remaining)= (End
Loss)/(Opening
Loss)
36.51%
30.48%
36.46%
19.14%
36.31%
28.54%
45.23%
32.55%
37.25%
43.35%
Note:
•The final column (red) is what purchasers are contractually obligated to
meet over 5 years
•Opening loss levels are estimated and may be adjusted following baseline
studies
•5 Year required remaining loss levels will be adjusted as per the purchaser
obligations in the final column
47
Total Investment to be made in Discos
2013
2014
Capex ($)
2015
Abuja
$36,606,000
$36,606,000
$36,606,000
$36,606,000
$36,606,000
Benin
$24,314,000
$24,314,000
$24,314,000
$24,314,000
$24,314,000
Enugu
$27,230,000
$27,230,000
$27,230,000
$27,230,000
$27,230,000
Ibadan
$43,865,000
$43,865,000
$43,865,000
$43,865,000
$43,865,000
Jos
$22,755,000
$22,755,000
$22,755,000
$22,755,000
$22,755,000
Kaduna
$29,960,000
$29,960,000
$29,960,000
$29,960,000
$29,960,000
Kano
$30,379,000
$30,379,000
$30,379,000
$30,379,000
$30,379,000
Eko
$45,170,000
$45,170,000
$45,170,000
$45,170,000
$45,170,000
Ikeja
$58,737,000
$58,737,000
$58,737,000
$58,737,000
$58,737,000
Harcourt
$25,514,000
$25,514,000
$25,514,000
$25,514,000
$25,514,000
Yola
$13,133,000
$13,133,000
$13,133,000
$13,133,000
$13,133,000
$357,663,000 $357,663,000
$357,663,000
$357,663,000
$357,663,000
Distribution
Company
2016
2017
Port
Total
48
Reforms Carried Out Contd.
Telecom Reforms:

BPE championed the reforms that have revolutionized
the country’s telecom sector with the enactment of the
Telecom Act. 2003 and the licensing of several service
providers that have created so many new jobs

From a tele-density of 0.42%, representing 450,000
telephone lines in 2001, the country’s tele-density has
grown to 82%, representing 123 million telephone lines
as at June 2013
49
REFORMS CARRIED OUT CONTD.
Pension Reforms
Prior to the enactment of the Pension Reform Act 2004 PEs
habitually deducted pension contributions from their employees and
lumped same with recurrent expenditure and spent it
That created a serious social problem
The reforms midwifed by BPE simply separated the agency that
deducted pension contributions from the agencies that manage
such contributions
With the establishment of Pension Commission and entrenchment
of a stable pension policy in Nigeria, retirees are now guaranteed
payment on retirement
50
REFORMS CARRIED OUT CONTD.
DEBT REFORM AND
MANAGEMENT OFFICE
THE
CREATION
OF
THE
 The establishment of Debt Management Office (DMO),
one of the outcomes of the reform works of the Bureau
DEBT
was
 Before the creation of the DMO, PEs and government agencies
borrowed arbitrarily without looking at the national picture.
 How much Nigeria owed then was unknown and most of those
debts were owed to the London and Paris Club
 It was BPE’s efforts at the reconciliation and resolution of the
debt crises that led to the creation of DMO
51
REFORMS CARRIED OUT CONTD.
PORT REFORMS



BPE championed the reforms of the nation’s seaports
through the concession of the various port terminals
Before the reform, it was practically impossible to
carry out meaningful business activities in the ports as
it took months to clear goods
Ports operations were characterized by long waiting
periods, diversion of Nigerian bound vessels to
neighbouring countries and very high and duplicated
charges to Ports users.
52
IMPACT OF REFORMS
ON THE ECONOMY
53
TELECOMS SECTOR GROWTH
54
PERCENTAGE CONTRIBUTION OF TELECOMS TO GDP
2001-2013
55
IMPACT OF PENSION REFORMS ON THE ECONOMY



The banking sector is yet to effectively and efficiently
finance the real sector of the economy, bridge the
infrastructural gaps and provide affordable housing in
Africa, due to the short term nature of its deposit
liabilities and cost of funds
20 Pension Fund Administrators (PFAs), seven Closed
Pension Fund Administrators (CPFAs) and four Pension Fund
Custodians (PFCs) have so far been licensed during the eight
year period.
A total of 5.32 million contributors have been registered
from 180,586 employers as at October 2012 while 55,904
retirees, currently receive their monthly pensions as and
56
when due.
IMPACT OF PENSION REFORMS ON THE ECONOMY
CONTD..



The total value of pension industry assets under the
Contributory Pension Scheme is currently over N4 trillion.
Investment of long term assets in economic development, is
helping in increasing domestic savings and investments, while
also helping in the development of the Capital Market by
contributing to increase in the volume of intermediated
funds, increase in level of trading, modernization and
deepening of the capital market
Pension funds act as intermediaries to a lot of financial
assets, including corporate equities, government bonds, and
so on, while also providing long term financial intermediation
to the real sector through corporate debt instruments and
investment funds
57
IMPACT OF PORTS REFORM ON THE ECONOMY
The benefits of the Ports reform have been divided
into two types :


Primary benefits : Direct savings in resource costs,
such as ships’ time, port labour costs and investment.
Secondary benefits: Such as reductions in freight
rates
and
port
charges,
and
fiscal
transfers between government and the private sector.
These show how the primary benefits are redistributed within the economy and affect ordinary
Nigerians.
58
Impact of Ports Reforms on the Economy
Contd..
The primary benefits are:
 Faster ship turn-round times
 Faster cargo turn-round times
 Faster truck turn-round time
 Use of larger ships
 Increased port capacity, postponing the need for
further investment
 Lower port operating costs
 Opportunities for inland distribution by rail
59
Impact of Ports Reforms on the Economy
Contd..
The secondary benefits are:
 Increased competition
 Lower port charges
 Lower freight rates
 Increased private sector investments
 Labour force improvements
 Net financial transfers to the government
(including taxes)
60
Impact of Ports Reforms on the Economy
Contd..
All of these benefits lead in turn to macroeconomic effects, measured in terms of:
Expansion of trade, and
 General economic growth

61
REFORMS: CURRENT INITIATIVES
To sustain the gains of past reforms, Seven critical Bills have
been targeted for passage into Law. The bills are:
1. Railway Bill
2. Inland Waterways Bill
3. Road Sector Reform Bill
4. National Transport Commission Bill
5. Ports & Harbor Reform Bill
6. Federal Competition and Consumer Protection Bill
7. Postal Bill
These bills have been approved by NCP and will soon be
presented to the FEC by the Attorney General of the
Federation for consideration and approval before
transmission to the NASS for enactment.
62
REFORMS & REQUIRED BILLS/LAWS
1. Ports and Harbour Authorities Bill:- Repeals Nigerian Ports Authority
Act No. 38, 1999 and provides for:
◦ The establishment of the Landlord Port Model, whereby the Port
Authorities will be landlords on behalf of the Federal Government
◦ Private sector participation in the provision of ports services - drives
efficiency, safety, accountability, competition, fairness, transparency
◦ The Bill is before the FEC for consideration and approval before
transmission to the NASS for enactment
2. Nigerian Railway Bill:- Repeals Nigerian Railway Corporation Act 1955:
◦ Limits role of Federal Government to procurement of railway services
and infrastructure through Concessions
◦ Protects rights and interests of licensees, customers and other
stakeholders
◦ Provides basis for regulation by National Transport Commission
◦ The Bill is before the FEC for consideration and approval before
transmission to the NASS for enactment
63
Reforms & Required Bills/Laws Contd.
3. National Transport Commission Bill:
◦ Provides economic regulatory framework for intermodal Transport
industry
◦ Provides for independent regulator (National Transport Commission)
◦ NTC will monitor compliance of government agencies and service
providers
◦ The Bill is before the FEC for consideration and approval before
transmission to the NASS for enactment
4. Inland Waterways Bill:- Repeals National Inland Waterways Act No.
13 1997:
◦ Provides the framework for ownership, management, control,
operation and development of inland water ways
◦ Creates conducive environment for private sector investment &
participation
◦ The Bill is before the FEC for consideration and approval before
transmission to the NASS for enactment
64
Reforms & Required Bills/Laws Contd.
5. Federal
Competition
Commission
Bill:-
Fosters
growth,
open
economy, puts ‘multiplier to work:
◦ Prohibits price fixing, bid rigging, price discrimination, fixing
quotas
◦ Prevents concentration of economic, political power, ownership
◦ Prohibits
monopolies/Regulates
mergers,
takeovers
and
acquisitions
◦ Stimulates economic growth through competition, efficiency, trade
and commerce, promotes consumer welfare
◦ Liberal access drives increased participation in the economy
◦ The Bill is before the FEC for consideration and approval before
transmission to the NASS for enactment
65
Reforms Bills to date
BPE produced sector-specific policies and reform Bills,
and one generic reform bill, including:
 Power Sector Reform Act
 Telecommunications Act
 Solid Minerals Act
 Petroleum Industry Bill
 Ports and Harbour Authorities Bill
 National Transport Commission Bill
 Federal Roads Authority Bill
 Roads Fund Bill
 Nigeria Railway Commission Bill
 National Inland Water Way Bill
 Gas Bill
 Federal Competition Commission Bill
 Postal Sector Reform Bill
 Industrial Policy
 Pension Reform Act
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ON-GOING &
FUTURE TRANSACTIONS
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CURRENT INITIATIVES

On-going transaction/activities include:
Housing: Reviewing the policy, legal and regulatory
framework to encourage private sector participation
The 7 National Parks – Reviewing the policy, legal and
regulatory framework to encourage private sector
participation
The 3 DFIs (i.e. BOI, BOA & FMBN) – Working on
creating a mega whole sale DFI like the ones in Brazil
and Germany River Basin Development Authorities
(RBDAs)
The 12 RBDAs – Reviewing the policy, legal and
regulatory framework to encourage private sector
participation
Health Sector
Sports Sector
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Targeted Privatization Contd.
 The
Federal Housing Authority is currently being
restructured and commercialized to position it to
meet up with its challenges
 The enterprises pending passage of the PIB in
the Oil & Gas sector
The Refineries
PPMC
NGC
 Other enterprises are:
Ajaokuta Steel Company
NIOMCO
Nitel/Mtel
Old Warri Terminal “B”
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CONCLUSION
We are working to expand private sector participation
in our economy
 Nigeria will continue to attract quality foreign
investors & capital that will boost technology transfer,
economic development, & Forex in-flow
 Provide assurance and comfort to investors on the
viability of recovering their costs and having a
reasonable return on their investments; and
 Redirect funding by Government to other key sectors
of the economy that are socially imperative such as
health, education, etc. and encourage the private
sector to be the engine room for economic growth and
development.

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Thank You
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