Nigerian Govt to Privatise 91 Public Enterprises

Nigerian Govt to Privatise 91 Public Enterprises
35 firms face full privatisation, 57 partial divestments planned.
BPE strengthens compliance, targets listings on Nigerian Stock Exchange.

The Federal Government has announced plans to privatise 91 public enterprises across key sectors of the economy in an effort to attract investment and improve operational efficiency.

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EKO HOT BLOG reports that the Director-General of the Bureau of Public Enterprises (BPE), Ayodeji Gbeleyi, disclosed this during a media briefing in Abuja on Tuesday.

“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,” Gbeleyi said.

According to him, the list includes 16 companies in the oil and gas sector, including refineries and depots, 20 in aviation, 12 in agriculture, and 28 in other public enterprises. Others span across mining and steel, transport, eco-tourism, as well as two agencies under the Federal Capital Territory Administration.

He explained that equity in 35 of the firms would be fully privatised, while 57 others would undergo partial divestment. However, he declined to name the companies, citing corporate and strategic reasons.

Gbeleyi stressed that the privatisation process would be gradual and rigorous.

“PPP transactions of privatisation and concessioning are a very painstaking exercise. If you must do it right and get it right, it should be the subject of a very rigorous exercise. One transaction at a time, you take them sectorally,” he said.

The BPE boss noted that the Bureau often engages financial, legal, and technical advisers to determine the most suitable transaction structure. He cited the liberalisation of the telecoms sector as an example of how reforms can unlock economic opportunities.

“If we had allowed NITEL to continue as an incumbent monopoly, the telecom and e-commerce boom we see today would not have happened,” he added.

Speaking on the power sector, Gbeleyi acknowledged existing challenges but insisted the reforms had prevented a total collapse.

“Even as challenging as the Discos are today, it could have been worse, possibly a total blackout. But stakeholders are working together to reposition the sector,” he said.

He highlighted ongoing projects in the sector, including the delivery of 3.2 million meters for electricity consumers, with Nigerians engaged in their installation. He added that another 2.5 million meters are in the pipeline.

“Our youths now have globally competitive skills, especially in telecoms,” he noted.

Gbeleyi also revealed that the government plans to list two electricity Distribution Companies and one Generation Company on the Nigerian Stock Exchange, though he withheld their names for confidentiality reasons.

On compliance, he assured that the BPE had strengthened its legal and compliance framework to prevent errors of the past.

“We created a new unit under the legal department to double-check contract management and compliance issues. Under my watch, we will remain law-abiding and ensure best practices in every transaction,” he said.