Bureau of Public Enterprises Federal Republic of Nigeria

04/19/23

Nigerian National Privatization Program

Bureau of Public EnterprisesFederal Republic of Nigeria

June, 2000-April 2003

United States Agency for International Development***

International Business and Technical Consultants, Inc.

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• About the BPE:

Secretariat of the National Council on Privatisation (NCP)

Implements the policies and decisions of the NCP

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• Main Functions of the BPE

Manages the privatisation of enterprises for the Federal Government of Nigeria, including: the appointment of consultants, advisers, investment bankers, issuing houses/stockbrokers, solicitors, trustees, accountants and other professionals

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• Main Functions of the BPE (cont’d)

Prepares approved PE’s for privatisation and commercialisation

Advises on further public enterprises that may be privatised or commercialised

Advises on capital restructuring needs of the PE’s to be privatised

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• Main Functions of the BPE (cont’d)

Ensures the update of accounts of all commercialised enterprises for financial discipline

Conducts effective post transactional performance monitoring and evaluation to ensure success

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• Implementation of Phase II Nigerian National Privatization Program

Phase 2a – 63 Enterprises – Financial Services - 4 Hotel Companies - 5 Media Enterprises - 2 Communications. (NITEL) - 1 Transport and Aviation - 4 Steel, Oil Palm, Sugar, etc. - 47

Phase 2b – 26 Enterprises Financial Services - 3 Hospitality & Tourism - 5 Mining & Minerals - 4 Comm. (NIPOST) – 1 Various Others – 13

Phase 3 – Telecoms, Electricity, and more

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• Economic Gains From Privatisation

More responsive market-oriented economy Increased competitiveness of specific

enterprises, sectors and economy as a whole

Improved company efficiencyGreater direct foreign & domestic

investment

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• Institutional & Political Gains from Privatisation:

World-standard agency procurement capability

Substantial revenues from enterprise salesSubstantial budgetary subsidy savings Frees government resources to be applied

to health, education and other social services

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• Characteristics of a Well-Functioning Procurement System:

TransparentCompetitiveEconomicEfficient

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• About the Project:

Contracted through USAIDCoordinated with World Bank and

DFID programmes“Core Team” approachExpatriate Technical Advisors

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• Project Purpose - to assist BPE

Project Priority development of transparent and

accountable procurement procedures for enterprise privatization transactions

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• Project Purpose - to assist BPE

Enterprise Privatisation TransactionsLabor RelationsCommunicationsProcurement and Management

Information Systems

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• Core Team Approach Brings Essential Sustainable Skills

Core Team - local or dual-nationals seconded to BPE from industry with:

Organizational Strength Procedural ExperienceLegal Expertise

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• Core Team Approach Provides In-House Capabilities to:

Manage increased level of privatization transactions

Ensure procedures are strictly followedExpand skills of existing and new staffSupport policy decisions of NCPEnsure Transparency of Process

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• Key Ingredients to Core Team Success:

High-level Executive Branch Political WillDynamic BPE Management DirectionDonor Agency Support and EncouragementProfessional Technical Assistance/GuidanceSkilled and Motivated Core Team MembersReceptive and Participative Bureau

Workforce

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• Services Provided to Assist BPE:

Document current policies, procedures, and processes and identify additional requirements

Review and assess policies, procedures, and processes for compliance with Government and World Bank guidelines

Assist development of plan to strengthen procedures and processes, especially IT/MIS systems applications

Supervise development of procedures and processes documentation

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• BPE IT/MIS Procedure and Process Strengthening:

Identify optimal level of computerization to achieve desired functionality and integrity

Identify and quantify need for customization to support core and non-core BPE requirements

Assist development of specific MIS applications

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• BPE Procedures and Processes Set Government Target for Professionalism:

Achieve greater functionality and integrity in procurement processes

Help local consulting companies and enterprises meet fair bidding criteria

Reduce “insider” transactions Increase number of bidders on assets

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• BPE Previous Structure:

Director General

Operations Planning & Monitoring

Council Affairs

Finance & Administration

Legal Services

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• BPE Previous Structure:

Director General

Industry & Manufacturing

Infrastructure & Networks

Natural Resources Oil &Gas Services

Sector

Office of Director General – Core Services

Transport & Aviation

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• Office of Director General – Core Services:

Internal Support FunctionsExternal Relations FunctionsMonitoring and ComplianceOversight

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• Internal Support Functions :

Central AdministrationInformation Technology SystemsFinance & Accounts Human ResourcesGeneral Counsel and Council

Secretariat

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• External Relations Functions :

Media RelationsIssues ManagementCommunicationsMarketing

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• Monitoring and Compliance :

Program PlanningProgram MonitoringResearch

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• Oversight:

Internal Audit & Due Process

Anti-Corruption

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• IBTCI Project Achievements:

World-class sustainable procurement system incorporating World Bank Guidelines

Holistic programmatic and project approach to successful privatisation program

$460 m. in privatisation revenues over 2 ½ years

Increased capacity and ability of domestic investors in national economic assets

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• Privatisations Accomplished: NAL Merchant Bank, Plc International Merchant Bank, Plc (IMB) UNIPETROL, Plc First Securities Bank International Bank, Plc (FSB) ASHAKACEM, Plc. WEST AFRICAN PORTLAND CEMENT, Plc (WAPCO) CEMENT COMPANY OF NORTHERN NIGERIA, Plc (CCNN) African Petroleum, Plc (AP) National Oil And Chemical Marketing Plc Benue Cement Company Plc (BCC) Nigercem Plc Assurance Bank of Nigeria (ABN) Afribank PLC

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• Privatization Support Project Example of going forward:

IDA Credit-supported 1) National public awareness program2) Lagos State Water Corporation3) Future additional activities

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• National Public Awareness Campaign Objectives

Generate awareness and support for privatization program

Improve privatization program transparency and increase public trust by providing extensive information

Attract potential domestic and foreign investors Strengthen sustainable regional communication team Shape public attitudes about privatization through

accountability

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Bureau of Public EnterprisesPublic Affairs Unit

Corporate and FinancialNational Coordinating Communication

Consultant

NATIONAL COORDINATING COMMUNICATION CONSULTANT, ZONAL COMMUNICATION CONSULTANTS AND ZCC-APPOINTED STATE REPRESENTATIVES

ZCC South West + 6 State Representatives

ZCC South East + 5State Representatives

ZCC South-South + 7State Representatives

ZCC North Central + 6State Representatives

ZCC North East + 6State Representatives

ZCC North West + 7State Representatives

Quarterly Zonal Workshops

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• Lagos State Water Corporation Privatization

Assist BPE and NPC by:

Review of preparation work to date Formulation of ownership structure and scope of

LSWC concession, activities, & responsibilities Conducting re-marketing and financial analysis Structuring transaction and prepare contract Managing bidding and transaction close-out

Bureau of Public Enterprises Federal Republic of Nigeria

Documents

Transcript of Bureau of Public Enterprises Federal Republic of Nigeria