The Federal House of Reps on Tuesday adopted a motion to Investigate Activities of the Bureau of Public Enterprise (BPE) in the Privatisation and Commercialization of Public Enterprises from 2019–2023:
The motion which was moved by Hon. Hassan Shehu Hussain was seconded by Hon. Shettima Ali and lated referred to the House Committee on Privatization and Commercialization.
Husain while presenting the motion
noted that the Federal Government of Nigeria commenced the Privatization and Commercialization of Public Enterprises in 2000;
He also notes that during the period under review; about 80 Public Enterprises were privatized through various modes of Privatisation including core investors, concessions, assets sales, initial Public Offers (IPO) etc.
The Kano lawmaker added that BPE Privatized in 2019, 29% of residues of the Federal Government’s shares in Geregu Power Plant to the core investors to upgrade it to a combined cycle for a total sum of N13,134,375,000 (Thirteen Billion, One Hundred and Thirty-Four Million, Three Hundred and Seventy-Five Thousand Naira);
“Also aware that BPE without the investors fulfilling their obligations to upgrade the plant to a combined cycle sold an additional 20% of the balance of shares meant for I.P.O to the Nigerian Public on the Nigerian Stock Exchange to the same investor in 2021;
“Worried that the Geregu Power Plant may never be upgraded to a combined cycle by the investors since BPE has removed the Public Enterprises from Post Privatization Monitoring.”
Also worried that the balance of N78 billion between Afam Power and Afam Three Fast Power remains outstanding though, the parties signed the Share Sale Purchase Agreement in 2020 and only 25% of the purchase consideration was paid and a 100% handover to investors on the condition that the balance will be paid upon commissioning of the Afam Three Fast Power which was equally done by former Vice President, Professor Yomi Osinbanjo before leaving office”
“Concerned that the Federal Ministry of Justice recently blocked the signing of the Zungeru Power Plant Concession Agreement, which would have generated $350million US Dollars in concession fees on the ground that there was no express approval by the Federal Executive Council (FEC).”
“Also concerned that the Current Director-General of BPE has been ordered to be remanded in Kuje prison for 30 days due to his refusal to implement a Supreme decision in Aluminum Smelter Company of Nigeria (ALSCON) transactions.”
How however urge the House to mandate the Committee on Privatization and Commercialization to investigate the activities of BPE from 2019 to May 2023 and report back within four (4) weeks for further legislative action.
