FG to Raise N746Bn from Sale of NITEL, Others

Federal government is eyeing a whopping N746.6billion privatisation proceeds this year, according to the Bureau of Public Enterprises (BPE).

Benjamin Dikki, director-general, BPE, said that his agency plan to handle a total of 23 definite transactions and another 29 prospective transactions and consequently, expect a total of N535 billion from definite transactions and N211.3 billion from prospective transaction.

The disclosure came as Vice-President  Namadi Sambo yesterday assured  the Senate Committee on Privatisation of federal government's determination to ensure the success of the privatisation programme.

Dikki spoke at a media briefing in Abuja to unveil the agency's 2014 Work Plan, and  he said the bureau had proposed to handle a total of 23 definite and 29 prospective transactions within the year.

It was further revealed that the federal government intended to go ahead with the proposed privatisation of four refineries including those of Port-Harcourt (1 and 2), Warri and Kaduna and also conclude the sale of SPDC assets.

However, Dikki said the sale of the refineries would only commence after due approval by labour unions which he said had already expressed their willingness to dialogue with government to develop appropriate business model for the refineries.

"This will be followed up and should lead to the commencement of the privatisation process in 2014," he said.

To this effect, he said the steering committtee was expected to commence work and draft an appropriate framework for privatisation which would be acceptable to all stakeholders.

The DG also said it would commence the process of executing the Guided Liquidation of the Nigerian Telecommunication Limited (NITEL) and its mobile arm, Mtel, having gotten the necessary legal requirement as well as the appointment of a liquidator.

According to him, all active staff of NITEL have now been paid their entitlements expect for some few  individuals whose issues where being looked into.

Speaking further on the proposed activities for the year, Dikki said prospective transactions in the nation's Capital Market Unit for 2014 would include an Initial Public Offer of the federal government's 24 per cent shares in the Transcorp Hilton Hotels; appointment of privatisation advisers to carry out private placement of federal government shares in NICON Insurance and Nigeria Reinsurance; conduct a quick assessment to carry out deferred public offer of Niger Dock Plc shares and to carry out a quick assessment to offer the remaining 30 per cent of federal government shares in Egbin Power Plc to the public. Other privatisation activities slated for the year would be to obtain financial statements and other data to determine the timing of the public offer of shares in the Power Holding Company of Nigeria (PHCN) successor companies and a quick assessment to start the deferred public offer in SAHCOL.