November 12, 2021 / 4:54 PM / Ottoabasi Abasiekong for WebTV / Header Image
Through its commercialization and privatization of state-owned assets and enterprises, the Bureau of Public Enterprises, BPE has so far generated over N1trn from 234 transactions.
Mr. Alex Okoh, the Director-General of the BPE, made this point as the keynote speaker at the Nigerian-British Chamber of Commerce investor series forum, which discussed the theme "Public-Private Partnerships: Investment and Concession Opportunities in Nigeria".
From his presentation, the Agriculture sector accounted for the highest transactions with 32 deals followed by Banking and Insurance, 31deals and Cement 15 deals.
BPE's sectoral reforms have changed the following sectors: the power sector, telecommunications sector, financial services sector (banking and insurance), ports and pension sectors, amongst others.
According to Okoh, Nigeria has a large and critical gap in its infrastructure stock compared with other emerging economies(i.e. an infrastructure stock to GDP of about 35% as against 70% for other emerging economies).
Citing the Revised Nigeria Integrated Infrastructure Masterplan(NIIMP), he said Nigeria requires US$2.3trn over the next 23 years (2020-2043) to bridge its infrastructure gap.
Considering the need for Nigeria to mobilize resources for its infrastructure, he stated that the way to go was through public-private partnerships, which have the following advantages;
In terms of prospective assets and enterprises that BPE on behalf of the Federal Government is considering to concession, he highlighted some of the SOEs, to include;
In his remarks, Mr. Teslim Shitta-Bey, Managing Editor/ Chief Economist of Proshare, the sponsor of the advocacy series, supported the position of the Director-General of BPE that Nigeria should be looking at fiscal issues from a balance sheet perspective rather than an income statement approach. The balance sheet approach looks at national assets and liabilities as distinct from revenues and expenditures.
Shitta-Bey noted that the present global liquidity glut could provide opportunities for Nigeria to unlock its assets for investments. He was happy that policymakers, experts, analysts, and scholars have shared that Nigeria faces a revenue challenge, not a debt crisis.
According to him, great countries and companies are reimagining sustainable strategies
He called for a new paradigm and purposeful public-private partnership (PPP) approach geared towards sustainable development in Nigeria.
Speaking further, he said Proshare has done about 15 years in the market with significant footprints in the capital and money markets and is also making its impression in governance and privatization.
Giving her opening remarks earlier at the event, Mrs. Bisi Adeyemi, the President of the Nigerian-British Chamber of Commerce (NBCC), said the investor series forum was an opportunity for chamber members to connect with business and investment opportunities.
She said this is in partnership with states, parastatals, and institutions. This series was an opportunity to discuss concessions, privatization benefits of non-performing public corporations, and the legal framework protecting investors in public-private partnerships.