PRIVATIZATION:  BPE projects N270billion revenue in 2020

NIPOST reform BPE job security


The Bureau of Public Enterprises (BPE), has projected a gross revenue of N270,790,591,293.00 to be generated from the privatization of public entities in the year 2020.

It however expects to expend the sum of N3,938,518,788.00, leaving the sum of N266,852,072,505.00 as the net revenue.

Director-General of the BPE, Alex A. Okoh, made this known during a Breakfast Meeting with media representatives in Abuja on Wednesday.

Alex Okoh, BPE DG

He said the Bureau’s forecast with particular reference to the projected revenue was not a wishful thinking but that “it has a compendium of proposed transactions that aggregate to that amount.”

According to the 2020 Executive Summary and projections, the highest revenue sum of N268,362,708,190.00 is expected to come from nine transactions under the energy sector, made up of electric power, mines and steel. Out of this figure, however, the sum of N2,104,790,750.00 has been projected as expenditure,

Another sum of N1,987,883,097.00 is the projected revenue from post-transaction management (PTM), which includes the sale of assets of the Nigerian Railway Corporation (NRC). It will cost the Bureau the sum of N45million to prosecute this transaction.

Five other transactions under the Developmental institutions and natural resources (DI&NR) are expected to fetch a total revenue of N440,000,000.00 with the BPE expenditure the sum of N942,352,000.00 to prosecute the transaction.

There are other transactions on which the Bureau has projected a total expenditure running into hundreds of millions of naira without any expected revenue. These are classified under sector-reform transactions. According to Okoh, such huge expenditures are meant to improve the current state of certain public enterprises and place them in a condition where they would attract investor, both within and outside the country.

For instance, the sum of N626,240,000.00 has been projected as expenditure on three transactions under Infrastructure & Public Private Partnership (I&PPP) with no revenue expected.

Answering a question, Okoh explained that the amount is expected to be spent on restructuring and improving the standard and outlook public tertiary institutions and health facilities to make them attractive to foreign investors.

Another sum of N220,136,038.00 is to be expended on five transactions under Industry & Communication (I&), which includes full privatization of the Nigerian Postal Service (NIPOST). Here too, the Bureau is expecting no revenue.

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