The Bureau of Public Enterprises (BPE) has disclosed that about 16 per cent of privatised public companies were non -performing, inaugurating four committees to review and implement a strategic roadmap for the resuscitation of ailing enterprises in the country.
The committees known as Technical Working Groups (TWGs) are to among others, examine the challenges in the sectors and develop a comprehensive five-year (2023–2027) turnaround programme for each of the non-performing enterprises.
Among those to come under searchlight were ailing enterprises in the automobile, housing (bricks and clay), mines and steel as well as oil palm sectors.
Inaugurating the TWGs on behalf of the federal government in Abuja, the Director General of the Bureau of Public Enterprises (BPE), Mr Alex Okoh said the initiative was in consonance with the ease of doing the business drive in Nigeria and in line with the federal government’s Economic Recovery and Growth Plan (ERGP).
In a statement, the BPE quoted Okoh as saying the inauguration was a culmination of the efforts by various stakeholders which started in 2018, to revive non-performing privatised enterprises in the country.
Represented by the BPE Director of Agriculture and Natural Resources at the Bureau, Mr Ignatius Ayewoh, he stated that in discharging its supervisory duties on privatised enterprises through the instrumentality of result-based monitoring and evaluation (RBME), the privatisation agency discovered that about 16 per cent of the privatised companies were non -performing hence the result of the finding was submitted to the National Council on Privatisation (NCP) in 2018 and to the Senate Committee on Privatisation in 2020.
He noted that this led to a meeting of the relevant stakeholders in the ailing enterprises held in July 2018.
The terms of reference of the inaugurated TWGs included: To conduct a diagnostic study on the enterprises in order to identify their current status (operational and financial positions) and conditions in terms of ownership, share structure and capacity utilisation; prepare a business plan that meets the current sectoral requirements, and examine the challenges in the sectors.
Others are to develop a comprehensive 5-year, (2023–2027) turnaround programme for each of the non-performing enterprises,
review and advise the federal government on the processes and implementation of turnaround programs.
The TWGs are also to determine the potential and economic viability of the sectors.
Also speaking during the inauguration, the Director, Post-Transaction Management at the BPE, Mr Toibudeen Oduniyi, urged the members to contribute their wealth of experience and expertise for the actualisation of the much-desired revitalisation of the non-performing Enterprises for the economic growth of the country.