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Tag: BPE

  • BPE alerts Senate on PIB’s weaknesses

    BPE alerts Senate on PIB’s weaknesses

    The Director-General, Bureau of Public Enterprises (BPE), Benjamin Dikki, yesterday told the Senate Committee on Privatisation that the Petroleum Industry Bill (PIB) before the National Assembly may not attract investors.

    Speaking while the committee visited BPE on its oversight function, he explained that if the bill does not separate policy formulation from operation and regulation, it will run into problems, adding that if the bill does not delineate the powers, no investor will come.

    Dikki told the lawmakers that this is accountable for why investors have not established refineries in Nigeria, despite the profitable nature of the business.

    He said in the present bill “you have regulatory power domicile with the ministry, domicile with the regulator and domicile with other agencies. That is confusion. One, it is more or less not changing the status quo because that is what exists now.”

    He noted that as the petroleum industry is being operated presently, it has regulatory power in the hands of different agencies and the change has not been effected in the bill before the legislature, arguing that the bill is confusing since it is not changing the present status quo.

    He however advised that if the reforms in the petroleum industry are to commence effectively, government must delineate the roles of the agencies.

    His words: “It is more or less not changing the status quo because that is what exists now. Now DPR has a regulatory power. NNPC has some regulatory power, and the Ministry has some regulatory power

    If these reforms are to take effect, you must separate policy formulation from regulation and operation. Now if you don’t clearly delineate those roles, what ever bill you pass, will run into problems.

    “Now if you look at the PIB, you have regulatory power domicile with the ministry, domicile with the regulator and domicile with other agencies. That is confusion. One, it is more or less not changing the status quo because that is what exists now,” he added.

  • BPE promises improved power by Sept.

    BPE promises improved power by Sept.

    The Bureau of Public Enterprises (BPE) has assured “drastic improvement” in power supply by September this year.

    It also said that power would be stable by the first and second quarter of next year.

    These disclosures by the BPE DG, Benjamin Dikki in Abuja at the Second annual national workshop of the Chartered Institute of StockBrokers (CIS), came hours after the Minister of Power, Prof. Chinedu Nebo said that a plethora of investments would be required to achieve the 40,000 megawatts target mentioned in the Vision 2020.

    The BPE boss said the improvement and stability of power would be possible after the final takeover of the PHCN successor firms by private investors in the power sector.

    He however, assured investors in the sector of the safety of their investments and increased rate of returns on their investments.

    Speaking on the workforce that would be engaged by the investors in the power sector, the minister said the federal government would not lay off the Power Holding Company of Nigeria (PHCN) workers but instead disengage them from public service employment so that they can migrate to the private sector.

    Nebo explained that the current PHCN workers would be retrained and would be part of the new energy market or be engaged in other critical sectors of the economy.

    On the pending severance benefits of the PHCN workers, the Minister stated that outstanding benefits to the workers would be paid to them by the end of July, as ”all bottlenecks to the current privatisation exercise were being resolved.”.

  • Govt to scrap BPE, NAPEP, NEIC, 217 other agencies

    Govt to scrap BPE, NAPEP, NEIC, 217 other agencies

    •It’s speculative, says Presidency

    The Federal Executive Council (FEC) has agreed to scrap the Bureau of Public Enterprises (BPE) and 219 other parastatals and agencies. There are about 540 of such agencies.

    Besides, the government is to merge the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

    A “proper investigation of the allegations made by the National Boundaries Commission against the Office of the Surveyor-General of the Federation (OSGOF) over the funding of two non-existent boundary demarcations is to be conducted.

    The OSGOF will also be probed for alleged illegal extension of Nigeria’s maritime boundary from 200 nautical miles to 350 nautical miles at $12 million without consulting.

    These are the highlights of the outcome of a review of the White Paper on the report of the Presidential Committee on the Rationalisation and Restructuring of Federal Government Parastatals and Commissions, which was headed by ex-Head of Civil Service of the Federation Mr. Steve Oronsaye.

    The Federal Executive Council (FEC) spent the last three weeks to review the report and concluded the exercise on June 26.

    But Presidential spokesman, Dr. Reuben Abati described the scrapping of the agencies as speculative.

    “The report is still at the FEC level and the committee was set up to review the White Paper.

    “There is no final decision yet. Anything outside that is mere speculation.”

    The Federal Government in 2011 inaugurated the Oronsaye Panel to restructure and rationalise Parastatals, Commissions and Agencies of the government as part of measures to reduce the rising budget profile.

    After the submission of the report, a White Paper Committee was set up to look at the recommendations of the Presidential Committee.

    The Federal Executive Council ratified the recommendations of the White Paper Committee.

    According to a document obtained by our correspondent, some of the agencies to be scrapped are the BPE; National Poverty Eradication Programme (NAPEP); Fiscal Responsibility Commission (FRC); Public Complaints Commission (PCC); Nigerian Export Promotion Council; Public Complaints Commission (PCC); National Salaries, Incomes and Wages Commission (NSIWC); Federal Highways Department; Utilities Charges Commission; and National Economic Intelligence Committee, among others.

    The approval of the EFCC –ICPC merger was in line with the recommendation of the Oronsaye Panel.

    The panel’s report said: “Extant anti-corruption laws should be repealed, while a new one is enacted to accommodate the consolidation of EFCC, ICPC and the Code of Conduct Bureau.

    “The establishment of strong departments, among others, in the proposed consolidated structure is desirable as they would handle the following areas: (i) Prosecution; (ii) Investigation (iii) Prevention (Advocacy); and (iv) Asset declaration/ forfeiture. The Nigeria Financial Intelligence Unit(NFIU) should be made autonomous.”

    The highlights of FEC decisions are: .abolition of Fiscal Responsibility Commission. Attorney General and Minister of Justice directed to initiate necessary action for the abolition of the Commission;

    .RMAFC is already empowered by the Constitution to carry out the function of Fiscal Responsibility Commission;

    .the law establishing Police Service Commission be amended to make Minister of Police Affairs head of the Commission;

    .EFCC and ICPC consolidated into one anti-corruption agency:

    .a “Sunset Clause” is to be introduced to the BPE to conclude its assignment and wind down;

    . withdrawal of the Military from the Contributory Pension Scheme should be reversed;

    .PCC is to be merged with the Human Rights Commission, which has the capacity to perform the functions of the PCC. The PCC Act to be removed from the Constitution by amending Sections 153 and 315; and

    .the National Salaries, Incomes and Wages Commission (NSIWC) is to be abolished and its law repealed. Its functions are to be transferred to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

    The government directed that the enabling law of the Nigeria Football Association (NFA) be amended to reflect the directive of FIFA that the Organisation should be renamed a Federation.

    “The NYSC will be restructured with a view to developing a framework to cover critical areas of national socio-economic development to which Corps members would be deployed for their primary assignments.

    “The Government accepts the Presidential Committee’s recommendation that COREN should no longer receive budgetary allocation from 2015 Fiscal Year.

    “FERMA and the Federal Highways Department of the Federal Ministry of Works are to be transformed into an extra-ministerial department. The enabling law of FERMA is to be amended to reflect the change of status

    The government accepts the Presidential Committee’s recommendation for the proper investigation of the allegations made by the National Boundaries Commission against the OSGOF over the funding of two non-existent boundary demarcations as well as the alleged illegal extension of Nigeria’s maritime boundary from 200 nautical miles to 350 nautical miles at $12 million without consulting.

    “The Government directs the Border Communities Development Agency(BCDA) to relocate to the Presidency with its own line budget and be strengthened.”

    The recommendation that NEMA be merged with the National Refugees Commission into one agency to be known as the National Emergency Management and Refugees Commission was rejected.

    The government accepted the scrapping of NAPEP and directed that the functions of NAPEP be merged with those of the National Directorate of Employment (NDE).

    “The government accepts the recommendation for the abolition of the Utilities Charges Commission and repeal of its enabling law. The government approves the redeployment of Staff of the Commission to the Office of the Head of Civil Service of the Federation, provided they are civil servants.

    “The government rejects the recommendation of the Presidential Committee that the National Christian Pilgrimage Commission (NCPC) and the National Hajj Commission of Nigeria (NAHCON) be abolished and their functions transferred to a department under the Ministry of Foreign Affairs.

    “The government has also directed that the law establishing Police Service Commission be amended to make Hon. Minister of Police Affairs to head the Commission.”

    Some of the agencies that survived are Code of Conduct Bureau; Council of State; Federal Character Commission; Federal Civil Service Commission; Federal Judicial Service Commission; Independent National Electoral Commission; National Defence Council; National Economic Council; National Judicial Council; National Population Commission; National Security Council; Nigeria Police Council; Revenue Mobilisation Allocation & Fiscal Commission; Bureau of Public Procurement; Central Bank of Nigeria; Code of Conduct Tribunal; Economic & Financial Crimes Commission & Independent Corrupt Practices and Other Related Offences Commission to be consolidated into one anti-corruption agency; Infrastructure Concessionary & Regulatory Commission (ICRC); National Pension Commission (PENCOM):; Nigerian Investment Promotion Commission (NIPC); National Human Rights Commission (NHRC); and National Institute for Sports. The others are Nigeria Football Federation/Nigeria Football Association; Citizenship and Leadership Training Centre; Council for Registered Engineers (COREN); Surveyors Registration Council (SRC); FERMA and the Federal Highways Department of the Federal Ministry of Works; Office of Surveyor General of the Federation (OSGOF); National Boundary Commission; Border Communities Development Agency (BCDA); National Institute for Policy and Strategic Studies; National Emergency Management Agency (NEMA); National Commission for Refugees; Debt Management Office; Niger Delta Power Holding Company ; National Planning Commission; National Bureau of Statistics; Centre for Management Development (CMD); National Institute of Social and Economic Research; and National Identity Management Commission. There are also Nigeria National Merit Award; Federal Road Safety Commission; Niger Delta Development Commission; New Partnership for Africa’s Development (NEPAD); National Agency for the Control of HIV/AIDS (NACA); Nigerian Christian Pilgrims Commission (NCPC);National Lottery Regulatory Commission; National Lottery Trust Fund; Service Compact with All Nigerians (SERVICOM); Nigeria Extractive Industries Transparency Initiative (NEITI); National Centre for Women Development.

    SCRAPPED

    Fiscal Responsibility Commission

    Bureau of Public Enterprises

    Nigerian Export Promotion Council

    Public Complaints Commission (PCC)

    National Salaries, Incomes and Wages Commission (NSIWC);

    National Poverty Eradication Programme (NAPEP)

    Utilities Charges Commission

    National Economic Intelligence Committee

    PARASTATALS, COMMISSIONS & AGENCIES TO BE RETAINED

    Code of Conduct Bureau

    Council of State

    Federal Character Commission

    Federal Civil Service Commission

    Federal Judicial Service Commission

    Independent National Electoral Commission

    National Defence Council

    National Economic Council

    National Judicial Council

    National Population Commission

    National Security Council

    Nigeria Police Council

    Citizenship and Leadership Training Centre:

    The Centre is to be refocused on moral values and re-orientation

    Council for Registered Engineers (COREN):

    The Government accepts the Presidential Committee’s recommendation that COREN should no longer receive budgetary allocation from 2015 Fiscal Year

    Surveyors Registration Council (SRC):

    Budgetary Allocation to SRC shall be stopped with effect from 2015 Fiscal Year

    Federal Roads Maintenance Agency:

    FERMA and the Federal Highways Department of the Federal Ministry of Works are to be transformed into an extra-ministerial Department. The enabling law of FERMA to be amended to reflect the change of status

    Office of Surveyor General of the Federation (OSGOF):

    Border Communities Development Agency (BCDA):

    The Government directs the BCDA to relocate to the Presidency with its own line budget and be strengthened

    National Institute for Policy and Strategic Studies

    National Emergency Management Agency (NEMA):

    The Government rejects the recommendation that NEMA be merged with National Refugees Commission into one agency to be known as the National Emergency Management and Refugees Commission

    National Commission for Refugees

    Debt Management Office

    Niger Delta Power Holding Company

    National Planning Commission

    National Bureau of Statistics

    Centre for Management Development (CMD)

    National Institute of Social and Economic Research

    National Identity Management Commission

    Nigeria National Merit Award

    Federal Road Safety Commission:

    The Government rejects Presidential Committee’s recommendations that the Act setting up the FRSC should be repealed

    Niger Delta Development Commission

    New Partnership for Africa’s Development (NEPAD)

    National Agency for the Control of HIV/AIDS (NACA)

    Nigerian Christian Pilgrims Commission (NCPC):

    The government rejects the recommendation of the Presidential Committee that the NCPC and the National Hajj Commission of Nigeria be abolished and their functions transferred to a department under the Ministry of Foreign Affairs.

    National Lottery Regulatory Commission

    National Lottery Trust Fund

    Service Compact with All Nigerians (SERVICOM)

    Nigeria Extractive Industries Transparency Initiative (NEITI)

    National Centre for Women Development

     

     

  • FEC scraps BPE, NAPEP, NEIC, 217 other agencies

    FEC scraps BPE, NAPEP, NEIC, 217 other agencies

    …Approves merger of EFCC, ICPC

    The Federal Executive Council (FEC) has agreed to scrap the Bureau of Public Enterprises and 219 other parastatals and agencies.

    Also, in spite of the controversy, the government has accepted the recommendation to merge the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

    But the government has accepted the recommendation to conduct a “proper investigation into the allegations made by the National Boundaries Commission against the Office of the Surveyor-General of the Federation (OSGOF) over the funding of two non-existent boundary demarcations.

    The OSGOF will also be probed for alleged illegal extension of Nigeria’s maritime boundary from 200 nautical miles to 350 nautical miles at the cost of US$12 million without consulting.

    These are the highlights of the outcome of a review of the White Paper on the report of the Presidential Committee on the Rationalization and Restructuring of Federal Government Parastatals, Commissions, which was headed by ex-Head of the Civil Service of the Federation, Mr. Steve Oronsaye.

    The Federal Executive Council (FEC) had spent the last three weeks to review the report and concluded the exercise on June 26.

    The Federal Government FG had in 2011 inaugurated the Oronsaye panel to restructure and rationalize Parastatals, Commissions and Agencies of the government as part of measures to reduce the rising budget profile.

    After the submission of the report, a White Paper Committee was set up to look at the recommendations of the Presidential Committee.

    The FEC, however, finally debated and ratified the recommendations of the White paper Committee.

    According to a document obtained by our correspondent, some of the agencies to be scrapped are the BPE; National Poverty Eradication Programme (NAPEP); Fiscal Responsibility Commission(FRC); Public Complaints Commission(PCC); Nigerian Export Promotion Council; Public Complaints Commission (PCC); National Salaries, Incomes and Wages Commission (NSIWC); Federal Highways Department; Utilities Charges Commission; and National Economic Intelligence Committee among others.

     

  • PHCN assets: BPE to penalise defaulting investors

    PHCN assets: BPE to penalise defaulting investors

    •New owners to take over in October

    Any new investor in the Power Holding Company of Nigeria (PHCN) that is unable to pay the 75 per cent bid balance would be penalised.

    Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki, who disclosed this in Lagos, also said that the new investors are expected to fully take over in October this year after paying the balance of 75 per cent bid.

    The investors in the PHCN successor companies had earlier made the mandatory 25 per cent payment.

    Dikki, who spoke during a television programme, however, expressed the confidence that all the investors were serious businessmen who have the required financial muscle to pay the bid price.

    Head, Public Communications, Mr. Chigbo Anichebe made this disclosure in a statement yesterday.

    He also allayed fears of monopoly by the investors, saying that the necessary framework and institutional checks had been put in place to regulate their activities and appropriate pricing.

    The BPE boss appealed that the investors be given time to increase capacity.

    He said: “They (investors) will after take over, re-tool and bring in new machinery like turbines, which are not easily bought off the shelf to put power on proper footing”.

    Besides, he said  the investors would need time to re-tool after take over and between two- three years to bring in the required machinery after which the country would witness increased and steady power supply.

    Dikki  assured Nigerians that power supply in the country will improve when the private investors take over. He expressed confidence that the introduction of sound maintenance culture would ensure that the current installed capacity of 6000 megawatts is exploited and put on the national grid. He stressed that that alone would stabilise power supply.

    Dikki who also spoke on agriculture and transportation sectors in the country, said the Bureau was working in tandem with the transformation agenda of the present administration to transform the two sectors through the privatisation of the Abuja Securities and Commodity Exchange (ASCE) and the setting up of a regulatory body in the transport sector.

  • PHCN assets: BPE to penalise defaulting investors

    •New owners to take over in October

    Any new investor in the Power Holding Company of Nigeria (PHCN) that is unable to pay the 75 per cent bid balance would be penalised.

    Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki, who disclosed this in Lagos, also said that the new investors are expected to fully take over in October this year after paying the balance of 75 per cent bid.

    The investors in the PHCN successor companies had earlier made the mandatory 25 per cent payment.

    Dikki, who spoke during a television programme, however, expressed the confidence that all the investors were serious businessmen who have the required financial muscle to pay the bid price.

    Head, Public Communications, Mr. Chigbo Anichebe made this disclosure in a statement yesterday.

    He also allayed fears of monopoly by the investors, saying that the necessary framework and institutional checks had been put in place to regulate their activities and appropriate pricing.

    The BPE boss appealed that the investors be given time to increase capacity.

    He said: “They (investors) will after take over, re-tool and bring in new machinery like turbines, which are not easily bought off the shelf to put power on proper footing”.

    Besides, he said  the investors would need time to re-tool after take over and between two- three years to bring in the required machinery after which the country would witness increased and steady power supply.

    Dikki  assured Nigerians that power supply in the country will improve when the private investors take over. He expressed confidence that the introduction of sound maintenance culture would ensure that the current installed capacity of 6000 megawatts is exploited and put on the national grid. He stressed that that alone would stabilise power supply.

    Dikki who also spoke on agriculture and transportation sectors in the country, said the Bureau was working in tandem with the transformation agenda of the present administration to transform the two sectors through the privatisation of the Abuja Securities and Commodity Exchange (ASCE) and the setting up of a regulatory body in the transport sector.

  • Senate opposes liquidation of NITEL

    Senate opposes liquidation of NITEL

    • Opts for concessioning/ppp

    The Senate has asked the Bureau of Public Enterprises (BPE) to discountenance any plan to liquidate the moribund Nigeria Telecommunication (NITEL).

    Instead of the “guided liquidation” of NITEL that BPE is pursuing, the upper chamber said NITEL should be concessioned or managed under the Public-Private Partnership (PPP) model.

    Chairman, Senate Committee on Privatisation, Senator Gbenga Obadara, stated this at a press conference in Abuja, yesterday.

    He said the committee told the BPE and National Council on Privatisation (NCP) not to liquidate NITEL and Mtel.

    He said BPE informed the committee that NITEL was indebted to the Federal Government and others to the tune of N351 billion, adding that they were surprised that BPE or NCP could not give the worth of NITEL.

    He said the committee is concerned that BPE intended to liquidate a firm it did not know its value.

    He said: “We met with BPE and NCP on the way forward over NITEL and Mtel to obtain the situation report of the proposed privatisation of both entities.

    “We were told that the exercise will go through guided liquidation. We took them on why NITEL should be liquidated in any form at all. We thought about how NITEL would be put to a better use.

    “We were confronted with the fact that NITEL is owing the Federal Government and other people about N351 billion. We also asked to know those owing NITEL?

    “They could not give us the fact of who is owing NITEL. We were later told that NITEL is owing the Federal Government N179 billion. But with facts available, we know that the Federal Government and government’s agencies are owing NITEL about N250 billion.

    “They (BPE) said NITEL is still owing banks about N64 billion which we know can still be negotiated.

    “The people that are owing NITEL we don’t know. We asked what is the worth of NITEL today? They could not tell us the worth of NITEL.

    “How do you then sell what you don’t know the worth of? As people representing Nigerians from various Senatorial districts, we thought it fit that we should not allow NITEL to be sold without knowing or having empirical facts to corroborate what they were telling us.

    “We took them on why it should be guided liquidation or liquidation at all.

    “If you look at international best practices today, it is Public-Private Partnership PPP) or concession. The BPE failed to tell us the procedure they are going to adopt in the liquidation.”

    Obadara said the committee recognised the fact that no nation sells its common wealth, adding that NITEL as a major government firm badly run by past administrations, should not be sold.

    The lawmaker said that when he assumed the chairmanship of the privatisation committee, he assured Nigerians that the country’s enterprises would not go the way of others in the past.

    He noted that members of the committee believed that if NITEL was given a life line through concessionaires or PPP arrangement, “with good conditions, including tax rebates”, Nigerians would benefit from the organisation.

  • Senate opposes NITEL liquidation

    Senate opposes NITEL liquidation

    The Senate on Thursday asked the Bureau of Public Enterprise (BPE) to discountenance any plan to liquidate the moribund Nigeria Telecommunication (NITEL).

    Instead of “guided liquidation” of NITEL BPE is pursuing, the upper chamber said that NITEL should be concession or run under Public Private Partnership (PPP).

    Chairman, Senate Committee on Privatization, Senator Gbenga Obadara, stated this at press conference in Abuja.

    Obadara (Ogun Central) said that members of the committee told the management of BPE and National Council on Privatization (NCP) to drop the idea of liquidating NITEL and Mtel.

    He said that BPE informed members of the committee that NITEL owed the Federal Government and others the sum of N351 billion.

    The lawmaker added that they were surprised that the BPE or NCP could not say the worth of NITEL.

    He said that their concern is how BPE intend to liquidate a concern whose value was not known.

     

  • BPE receives 20 bids for Afam, Kaduna DISCO

    BPE receives 20 bids for Afam, Kaduna DISCO

    The Bureau of Public Enterprises (BPE) has received 20 bids by prospective investors for the Afam Power Generation Company (Genco) and Kaduna Electricity Distribution Company (Disco).

    The BPE, in a statement, said nine bids were received for Afam Power Plc and 11 for Kaduna Distribution Company.

    BPE also said that at the deadline of January 31, 2013 for the submission of Expressions of Interest (EOIs), it received 19 applications for Kaduna Disco and 29 applications for Afam Generation Company. Consequently, on February 4, 2013, it sent Requests for Proposals (RFP) to the 48 prospective bidders.

    Afam Power Plc and Kaduna Electricity Distribution were among the 17 PHCN successor companies that were earlier advertised for sale in December 2010 but following the rigorous technical evaluation that all bids were subjected to, none of the bids received for the two assets scored the minimum 75 percent required to progress to the financial bid stage. This development compelled the National Council on Privatisation (NCP) to order a re-run of the entire transaction as it was not prepared to settle for a second best.

    The pre-due diligence conference for the re-tender of Afam Power Plc and Kaduna Electricity Distribution Plc was held in Abuja on Monday, March 4, 2013.

  • BPE to sell power plant to CMEC-Pacific

    BPE to sell power plant to CMEC-Pacific

    The Bureau of Public Enterprises (BPE) has given an offer letter to CMEC-Pacific, for a Power Purchase Agreement (PPA) for the sale of the Omotosho Power Plant.

    According to a statement signed by the Head of Public Communications of the BPE, Mr. Chigbo Anichebe, on Wednesday in Abuja, the transaction is through a debt-equity swap process.

    The statement quoted the bureau’s Director-General, Mr. Benjamin Ezra Dikki, as saying it was in fulfillment of the National Council on Privatization’s decision.

    The News Agency of Nigeria reports that the council had approved the sale at its last meeting held on February 28.

    “NCP had approved that CMEC-Pacific pay 217,531,507.79 U.S. dollars for the power plant.

    “However, the net total amount accruable to the Federal Government for the plant would be 82,336,179.42 U.S dollars, given that 30,325,386 U.S. dollars would be deducted from the capital cost for the construction of a switch yard for the Transmission Company of Nigeria (TCN),’’ the statement said.

    It will be recalled that phase one of the Omotosho plant having a capacity of 335Megawatt, was constructed in 2002.

    The total price under the turnkey contract was 166,724,578 U.S. dollars.

    The Federal Government funded 35 per cent of the cost while the balance of 65 per cent was financed through vendor financing.