The Bureau of Public Enterprises (BPE) has disclosed plans to sell off the remaining 40% shares of the Federal Government in electricity distribution companies (discos) and four other assets in 2024.
The Director-General of the BPE, Mr Alex Okoh, made this during a media chat in Abuja on Tuesday.
Other assets that will be sold off next year through the Public Offerings (IPO) at the capital market include Eleme Petrochemicals Company Limited (EPCL), Nigeria Re-Insurance; Nicon Insurance; and the Nigeria Machine Tools in Osogbo to Nigerians public.
He admitted that there are some existing challenges around the ownership of the discos, which the government plans to resolve soon.
According to Okoh, “IPO through the capital market is a very credible strategy for us. Once we are able to resolve a few changes we are having now, especially ownership challenges with some Discos, we resolve to sell.
“So the capital market, yes once we resolve the 40 per cent ownership in the discos, once we are done with the discos, we also plan to take Eleme petrochemicals to the market, we had also planned to take Nigerian Reinsurance insurance to the market, Nicon insurance to the capital market. Of course, we started but had some problems with a core investor, Jimoh Ibrahim.
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“So, there are lots of issues involved in taking some of these entities to the market. Nigerian Machine Tools, Oshogbo is also slated for the capital market. Yes, on all fronts, we expect a more active year in 2024 for the BPE, and every step of the way both in terms of educating the public and also helping us to navigate various stakeholder concerns.”
Specifically, the Federal Government plans to generate N298.4 billion in revenue from selling off certain government assets in 2024.
The move is believed to be an attempt to finance public debts as well as reduce the fiscal burden on the part of the federal government.
Also, the Minister of Finance and Co-ordinating Minister of the Economy, Wale Edun, recently said the privatization effort of the government will drive macroeconomic growth as well as allow investors to participate optimally in the economy.