The Nation Newspaper

Tag: Bureau of Public Enterprises (BPE)

  • Govt to increase representation in DisCos’ boards

    THE Federal Government said it will increase its representation on the boards of electricity distribution companies (DisCos) by two given its 40 per cent shareholding.  This, it said will help strengthen the corporate governance structure of the power firms.

    The Bureau of Public Enterprises (BPE), in a statement in Abuja yesterday, said the decision was one of the highlights of the June 26, 2019 meeting between it and the shareholders of the DisCos.

    The objective is to ensure transparency in their operations as well as improve their performance.

    The BPE, according to the statement, at the meeting reiterated the purpose of the reform and privatisation in the power sector to address efficiency gaps and attract much needed private sector capital and management into the power sector. This reform was expected to transform the sector to meet the country’s electricity demand.

     

  • BPE to partner EFCC to ensure transparency in privatization processes

    Director General of the Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh has expressed the willingness of the Bureau to partner with the Economic and Financial Crimes Commission (EFFC) to ensure transparency in all the processes of the reform and privatization programme of the Federal Government.

    Okoh who made this known during a courtesy visit to the Acting  Chairman of the EFCC, Mr. Ibrahim Magu at the Commission’s Corporate office in Abuja recently, said the activities of the Bureau reflect the principles of transparency that the EFCC is known to propagate.

    He commended the EFCC for its recorded achievements over the years especially in the sanitisation of the nation’s economy which he said has increased investors confidence.

    The DG who was decorated during the visit as Anti-Corruption Ambassador by the EFCC acting Chairman, said that he was at the Commission to solicit the EFCC’s support in ensuring that the activities of the BPE are better monitored.

    His words, “The EFCC has provided a platform and atmosphere that has enhanced comfort and confidence in the investors who we directly deal with on a regular basis, the kind of comfort to engage and invest in this economy. The BPE is an agency of government that is mandated to provide sector and enterprise reforms as they relate to government and state owned enterprises”, he added.

    He informed his host that the Bureau over the years had conducted transactions in the various sectors of the Nigerian economy which have brought huge revenue to the Federal Government and improved service delivery.

    Responding, the Acting Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Magu expressed the Commission’s readiness to partner with the BPE in all its transactions.

    Read Also: EFCC loses bid to transfer Shekarau’s suit

    He assured his guest that the Commission was ready to carryout due diligence on any entity that shows interest in the purchase of government assets  in order to prevent corrupt elements from using the privatisation process as a means of laundering illegally acquired funds.

    “We will be willing to support you against any threat that will discourage investors from coming into the country and in order to achieve this; I think we need to establish a common desk for a seamless synergy. Once again I seize this opportunity to thank the BPE and I am happy to tell you that the baby you nurtured has now outgrown its parents as the EFCC today can boost of a befitting Head Office complex which was made possible by our determination and support from the current administration.”

    Magu thanked the BPE for its support during the evolution of the Commission saying the N100million received from the BPE as take off support helped the Commission to start its operations. “If we hadn’t gotten that money, we wouldn’t have been able to kick start”, he confessed.

    The money, he said, brought some seriousness into EFCC’s operations and “we started arresting those fraudsters who hitherto were seen as ‘untouchable’ moving around with convoys and sirens. Many of them were arrested and jailed and the Commission recovered substantial amounts of money on behalf of so many victims from them which were restituted to the victims.”

  • SAHCO launches IPO to raise N406 million

    Skyways Aviation Handling Company (SAHCO) Plc on Monday launched an initial public offer for sale of N406, 074, 000 with effect from November 12, 2018.

    This is just as the firm said its shareholders have concluded plans to divest 49 per cent equity to the public in line with the share purchase agreement it signed with the Bureau of Public Enterprises ( BPE) many years ago when the firm was privatized.

    At the signing ceremony witnessed by the Director-General of Bureau of Public Enterprises (BPE), Mr. Alex Okoh, its shareholders and other stakeholders, the company said is offering an ordinary share of 50 kobo each at N4.65 per share payable in full.

    Chairman of the company, Mr. Taiwo Afolabi said based on the terms of the executed Share Sale and Purchase Agreement (SSPA) in respect of the privatization, the shareholders of the company were obligated to divest 49 per cent equity stake in SAHCO to the Public.

    However, 10 per cent of the shares to be divested would be sold to the staff of the company.

    The chairman explained that the current shareholders would divest N406m ordinary shares of 50 kobo each representing 30 per cent of the entire issued and fully paid up Ordinary Shares in compliance with the terms of the SSPA.

    He said the company got the approval of BPE for a phased divestment in view of the current market conditions, adding, there are plans to divest the balance of 19 per cent equity stake at a future date.

    “SAHCO future strategy is to create long term shareholder value through the profitable operation and expansion of its business beyond Nigeria and into other West African markets with a vision to become the leading provider of passenger, ramp and cargo handling services in the West Africa sub-region”, he said.

    DG of BPE, Mr. Alex Okon recalled that SAHCO was privatized as part of the Federal Government’s enterprise reform agenda aimed at managing the privatized companies for efficiency and enhanced profitability.

    According to him, the SIFAX Group was required to offer certain percentage to the public to change the perspective that the assets were sold to cronies and friends of government.

    Also speaking Managing Director of SAHCO, Basil Agboarumi said the firm will put to judicious use proceeds from the funds injection to enable SAHCO remain a market leader in cargo , ramp and passenger handling services.

    He said the 10 per cent of the shares to be sold to the workers will generate proceeds that will be used to cater to the need of its personnel.

  • NCP approves privatization of Afam power plants

    NCP approves privatization of Afam power plants

    The National Council on Privatisation ( NCP ), which is chaired by the Vice President Yemi Osinbajo, has approved the commencement of the privatisation of Afam Power plants 1 to 5 in Rivers.

    According to statement issued by the Vice Presidential Spokesman, Mr Laolu Akande, on Monday the measure is to inject additional power into the national grid and improve electricity supply nationwide.

    Read also: NNPC increases gas supply to power plants by 123%

    Akande said this and other decisions were taken during the meeting of the NCP, between Aug. 22 and Aug. 23, 2017 at the Presidential Villa, Abuja.

    NCP is the highest decision making body on policies relating to the privatisation and commercialisation policies of the Federal Government.

    According to Akande, the Council also approved the pursuit of an out-of-court settlement involving the privatisation of Aluminium Smelter Company of Nigeria (ALSCON).

    The move, he said, aimed to resolve the lingering dispute between the Federal Government, BFIG and United Company RUSAL through the mediation of the Secretariat with the active collaboration of the Federal Ministry of Mines and Steel Development.

    The council advised that “the mediation efforts should take a holistic view of the entire sector and the overriding national interests to jumpstart industrial development through the steel sector in arriving at a resolution on the matter.”

    The council also  reviewed the proposals presented by its Secretariat, the Bureau of Public Enterprises (BPE), for the reform and restructuring of various sectors of the economy.

    Read also: Senate to probe Kaduna power plant failure

    Consequently, it approved the immediate revocation of the concession of the Lagos International Trade Fair Complex and the immediate commencement of a fresh privatisation of Yola Electricity Distribution Company.

    The approvals, he said , were aimed at giving traction to key infrastructure facilities in the country presently under concessions but had been adjudged to be performing sub-optimally.

    Other key decisions taken by the council included the approval of the amendments to the Work Plan for the conclusion of the transaction involving the concessioning of Terminal “B” Warri Old Port.

    The Council also approved the  restructuring and recapitalisation of Bank of Agriculture.

    “The restructuring of the BOA is in alignment with the Government’s desire to make financing options readily available to farmers for an aggressive diversification of the Nigerian economy.”

    He said the council also approved the immediate commencement of the reform and commercialisation of the River Basin Development Authorities to revitalise the irrigation and river basin potential for agricultural purposes.

    Similarly, to harness the nation’s untapped tourism potential, the council approved the partial commercialisation of the National Parks using three key national parks as pilot projects.

  • BPE to directors: Violate code, face EFCC, ICPC

    BPE to directors: Violate code, face EFCC, ICPC

    • Institutes code of ethics for alternate directors

    The Bureau of Public Enterprises (BPE) is placing investigation, sanction, sack and wrath of the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Crimes Commission (ICPC) ahead of its directors.

    A highly place reliable source at the Presidency, who made this disclosure to The Nation in Abuja on Wednesday, added that the sanctions are part of the measures to tackle corruption in the Code of Ethics that the new Director General of the Bureau, Mr Alex Okoh has instituted.

    Enforcement and compliance with the code of ethics by directors and alternate directors shall be part of the monitoring mandate of the Anti-Corruption and Transparency Unit (ACTU) that the ICPC will inaugurate on Friday.

    According to the source, “the BPE has instituted a code of ethics for directors and alternate directors representing BPE on boards of privatised enterprises on behalf Federal Government of Nigeria.”

    It was however learnt that the code of ethics applies to the director sitting on the board of privatised enterprises in which the federal government has equity or interest and any such person that may be nominated to act as alternate director of the directors’ behalf.

    A document that The Nation stumbled on in Abuja said that “in the event that the director/alternate directors violate the terms of this code of ethics, the bureau shall impose appropriate disciplinary measures of impropriety as contained in S.14 of the BPE staff manual.

    This would be without prejudice to the penalties imposed under the Corrupt Practices and Other Related Offences Act 2000; Economic and Financial Crimes Commission Act, 2004; and any other relevant laws.

    “In addition to sanctioning regime contained in Clause 14 of the BPE Staff Manual, the Director shall withdraw the nomination of  Alternate Director found culpable of violating this Code of Ethics.”

    The Director General had on assumption of office on April 21 said that his administration would also work to sustain the positive image of the Bureau while at the same time strive to change the negative perception held by some people about the BPE in the execution of its mandate.

    He promised to step up the post-privatization monitoring activities of the Bureau to ensure that owners of privatised enterprises live up to the covenants they signed with the Bureau so that Nigerians could derive maximum benefits from the privatised enterprises.

    The code of ethics for director/alternate directors that he has now instituted is that they (directors) “Report to the Bureau any concerns about unethical behaviour, actual or suspected fraud or violation of the Enterprise’s Code of Conduct Policy.

    “Act within his authority to protect the legitimate interest of the Enterprise, the FGN, Shareholders and its Employees.

    Where he has concerns about the running of the Enterprise or a proposed action, ensure that these are addressed by the Board and to the extent that they are not resolved, insist that the concerns are recorded in the minutes of the Board meeting.

    “Refrain from intruding in administrative issues that are the responsibility of the management of the Enterprise, except to monitor the results and ensure that procedures are consistent with Board Policy.

    “The Director/Alternate Directors shall ensure that their interaction with other Board members and representatives of the company before a Board meeting or a Board function are above board with no real or perceived indication of compromise on his part.

    ” The Director/Alternate Directors shall ensure that decisions on aspects that are provided for in the acquisition documents with the Bureau must be adhered to. Where there is the insistence of going against enshrined provisions in divestiture Agreements, the Director/Alternate Directors must insist on being recorded as disagreeing with the decision.

    The Director/Alternate Directors shall develop the ability to listen well, courage to speak up, patience and capability to ask the tough, probing but tactful questions in a way that doesn’t alienate others and that is helpful, not embarrassing, to the management of the Enterprise.

    “The Director/Alternate Directors shall ensure that critical matters that have come before the Board for consideration have first been filtered and considered by the relevant Sub-Committees.

    “The Director/Alternate Directors shall undertake the diligent analysis of all proposals placed before the Board and act with the level of skill expected from Directors.

    “The Director/Alternate Directors shall carry out their fiduciary obligations responsibly, that is, to take appropriate measures to ensure that the Board uses the Enterprises resources efficiently, economically and effectively, avoiding waste and extravagance; and

    “Attend the interaction forum for Board Members within the Bureau as a peer review tool and also a learning curve for future improvement.”

    It was, however, learnt that the tenure of an Alternate Director so designated by the Director shall be one year, subject to renewal for a maximum of one more year, at the discretion of the Director-General.

  • BPE pledges support for port authority

    The Director General of the Bureau of Public Enterprises (BPE), Mr Alex A. Okoh, on Thursday expressed the Bureau’s support for the Nigerian Ports Authority (NPA) in its effort to ensure efficient service delivery in Nigerian ports.

    According to a statement issued by the head public communications BPE Chuckwuma Nwokoh, he made this known when he received the Managing Director of the NPA, Ms. Hadiza Bala Usman, who paid him a courtesy visit in Abuja. 

    Okoh stated that the Bureau would constantly liaise with the NPA to ensure that the concessionaires keep to the terms of the agreements  they signed with the government and also to ensure that the agreements that are due for review are done expeditiously.

    The BPE boss said that this has become necessary in order to enhance efficiency and service delivery at Nigerian ports. 

     The Chief Executives reviewed the maritime industry and agreed on the framework for evaluation of the ports concession agreements. They also discussed the infrastructural challenges at the ports and the ways to address them.

    Both expressed optimism that the Reform Bills, especially the Ports and Harbour Bill and National Transport Commission Bill which are currently receiving attention at the National Assembly, would optimize operations at the ports. The two bills when enacted would strengthen the technical and economic regulatory framework in the maritime industry. 

    The NPA boss in her remark said that,synergy between both agencies would ensure an all encompassing review process of the ports concession agreements. While stressing the strategic position of the maritime sector in the nation’s economy and the enormous prospects it presents for economic growth, she maintained that inter-agency collaboration was one sure way to harness the potentials. 

    According to the report, the House of Representatives has last month passed the National Transport Commission Bill. In the words of the Bill, its main objective is “to provide efficient economic regulatory framework for the transport sector, mechanism for monitoring compliance of government agencies, transport service providers and users in the regulated transport industry with relevant legislation and to advise government on matters relating to economic regulation of the regulated transport industry”.

  • BPE pledges support for NPA

    BPE pledges support for NPA

    The Director General of the Bureau of Public Enterprises (BPE), Mr Alex A. Okoh, Thursday expressed the Bureau’s support for the Nigerian Ports Authority (NPA) in its effort to ensure efficient service delivery in Nigerian ports.

    According to a statement issued by the head public communications BPE Chuckwuma Nwokoh, he made this known when he received the Managing Director of the NPA, Ms. Hadiza Bala Usman, who paid him a courtesy visit in Abuja.

    Okoh stated that the Bureau would constantly liaise with the NPA to ensure that the concessionaires keep to the terms of the agreements they signed with the government and also to ensure that the agreements that are due for review are done expeditiously.

    The BPE boss said that this has become necessary in order to enhance efficiency and service delivery at Nigerian ports.

    The Chief Executives reviewed the maritime industry and agreed on the framework for evaluation of the ports concession agreements. They also discussed the infrastructural challenges at the ports and the ways to address them.

    Both expressed optimism that the Reform Bills, especially the Ports and Harbour Bill and National Transport Commission Bill which are currently receiving attention at the National Assembly, would optimize operations at the ports. The two bills when enacted would strengthen the technical and economic regulatory framework in the maritime industry.

    The NPA boss in her remark said that, synergy between both agencies would ensure an all- encompassing review process of the ports concession agreements. While stressing the strategic position of the maritime sector in the nation’s economy and the enormous prospects it presents for economic growth, she maintained that inter-agency collaboration was one sure way to harness the potentials.

    According to the report, the House of Representatives has last month passed the National Transport Commission Bill. In the words of the Bill, its main objective is “to provide efficient economic regulatory framework for the transport sector, mechanism for monitoring compliance of government agencies, transport service providers and users in the regulated transport industry with relevant legislation and to advise government on matters relating to economic regulation of the regulated transport industry”.

     

  • BPE DG pledges to ensure privatised enterprises live up to agreements

    The new Director-General,  Bureau of Public Enterprises (BPE), Mr Alex Okoh, has pledged to step up post-privatization monitoring activities of the bureau to ensure that owners of privatisedd enterprises live up to the terms they signed.

    A statement by Mr Alex Eros Okoh, Head,  Public Communications on Sunday in Abuja, added that the director general said this during the official handover by the former acting Director General, Dr Vincent Akpotaire.

    It said that the enhanced post-privatisation monitoring  would ensure that Nigerians derived maximum benefits from the enterprises.

    Okoh said that his administration would work to sustain the positive image of the bureau and strive to change the negative perception by some people about the BPE in the execution of its mandate.

    He, however, said that what was required of the staff was dedication to duty to achieve the desired goal.

    He thanked the former acting director-general for successfully piloting the affairs of the bureau in the last 14 months and called for synergy during the transition period.

    Okoh was appointed by the Federal Government on April 13.

    Earlier, Akpotaire, while handing over said due to his successor’s background as a seasoned administrator, the management and staff were confident that he would succeed in his new assignment and give the bureau a new lease of life.

    Members of the Management Team pledged to co-operate with the new director general to take the bureau to greater heights.

    Okoh was, before his appointment by the Federal Government,  the Managing Partner of Ashford and McGuire Consulting Ltd.

    According to the statement, he is currently a member of the Presidential Economic Advisory Council.

    He has 32 years working  experience, of which 22 were  in the banking industry where his responsibilities involved general management, leadership and organisational development.

    In his banking career, he functioned in a variety of roles, including corporate banking, operations and treasury, often leading projects, initiating and designing processes.

    He was the Managing Director/CEO of NNB International Bank Plc from 2001 to 2006 where his leadership took the bank from a comatose state to a position of enhanced value for stakeholders.

    He is a graduate of Harvard Business School’s Advanced Management Programme and has acquired international working exposure through programmes with Citibank New York, Fidelity Bank London, Swiss Banking Corporation, Zurich and Grindlays Bank, Zimbabwe.

    His former employers include Nigeria International Bank Limited (Citibank) and United Bank for Africa Plc.

    He studied Sociology at the University of Benin and holds a Master’s degree in Banking and Finance from the University of Ibadan.

  • TCN blames low power sector revenue on DisCos

    …Shops for 60 percent of counterpart fund to complete $200m projects

     
    The Managing Director, Transmission Company of Nigeria (TCN), Abubakar Atiku, Wednesday blamed the low revenue collection in the power sector on the inefficiency of the electricity Distribution Companies (DisCos).

    Addressing reporters in Abuja, he recalled that the defunct Power Holding Company of Nigeria (PHCN) was recording an excess of 60 per cent revenue collection, which the private investors undertook to improve on while acquiring the assets from the Bureau of Public Enterprises (BPE).

    Stressing that the record of the present DisCos revenue collection is a far cry from what is expected of it, the Chief Executive Officer (CEO), urged the private investors to scale up its collection to match the agreements they signed with the BPE.

    His words: “Discos, they are 100% responsible for deriving the revenue to the electricity market, and they are not living up to expectations. We expect them to be 100% efficient, we know it is not possible but when PHCN was privatized it is on record that the successor companies are doing more than 60% in terms of collection.

    “It was anticipated at the plan of the privatization to see that there is improvement over and above 60%. But what are we witnessing now, lower performance. So distribution companies must step up to live to the expectation they signed with BPE when they bought over these assets.”

    According to him, the major challenge facing the TCN is the problem of liquidity in the electricity market.
    The Managing Director pointed out that payment of TCN services in the market has gone down from 55% to 30% in recent past and with that, funds’ coming to TCN in the form of revenue has reduced.

    “It would interest you to note that TCN is being paid an average of 33% of her total invoice sent to the Market Operator between January and September 2016 which further reduced to 27% in the month of November, 2016,” he said.

    Reacting to issue of load rejection, Atiku noted that while some of the distribution firms were rejecting, others were taking more than their allocation, which in the long run balanced the system and power frequency and neutralized any cause for concern.

    Exonerating the TCN from the cause of load rejection that could have worsened the revenue collection, he said that it is on record that the Nigerian Electricity Regulatory Commission (NERC) queried the TCN to prove its claim on load rejection, which it has since responded to.

    The TCN boss boasted that the firm has record of power allocation from the System Operator regarding how some of the distribution companies took more than there allocation while some rejected theirs.

    He however noted that the fear of not taking more allocation stemmed from the fact that the commission would fine the DisCos in line with the stipulation of the Multi-Year Tariff Order (MYTO).

    His words: “On the issue of Discos rejecting loan, I will agree with you that some of them reject, some of them take more. If those taking more equal the amount that those are rejecting we will have a balance system. We will not have any cause to bother. But in most cases our frequency goes up more than the tolerable limit.

    “And once System Operator realizes that the frequency is more, that means somewhere somehow load is not taken.  And our records are there. NERC has queried us to substantiate our claim, which we have.

    “We have records by System Operator that any point in time for this and even distribution what it takes.

    Some of them must have taken more at a particular time, and due to micro allocation it us clearly stated that if you take more than your allocation, you will be fined. So, it is not TCN, it is MYTO, which NERC is enforcing that is why they have to pay for that.”

    According to him, the Federal Government has released 98% of the company’s 2016 budgetary allocation, while it hopes to secure more fund from this year’s budget for the completion of 22 critical projects.

    He disclosed that “the Federal Government has also approved the Contractor Financing Model for reinforcement and rehabilitation of projects in TCN. The first tram his for $200million worth of projects.

    The implication of this finance model is that the private contractors or investors can now fund TCN projects and be paid overtime. Although this would lead to the timely completion of projects, Uris however premised on our getting about 60% of Israel invoice paid, which is not the case presently.”

    Announcing that the present power generation into the Nigeria Electricity Supply Industry (NESI) was 3,200Mega Watts (MW), he said that TCN has within the six months of taking over its management from the Manitoba Hydro International improved its transmission capacity from 5,500MW to 6,500MW.

    Following the completion of some of its new projects, the company is expected to increase its wheeling capacity from 6,500MW to 7,200MW by the end of this year.

    The TCN, he said, has introduced dispatching tools which resulted in some more efficient interface with GenCos on one hand and Discos on the other hand and have also sucked in reducing Transmission Loss Factor (TLP) from 8.05% last year to7,82% as at January 2017.

    The CEO noted that this improvement in transmission loss translate to more power to DisCos for the people and about N5billion additional revenue to TCN, however due to poor market performance, impact of these is yet to be felt in terms of financial returns to TCN.

  • Reps halt NNPC’s $400m loans bid for refineries

    Reps halt NNPC’s $400m loans bid for refineries

    The House of Representatives committee on Privatization and Commercialisation Wednesday stopped the bid by the Nigerian National Petroleum Corporation NNPC to acquire a $400 million loan for the upgrade of the four refineries in the country.

    The Hon. Ahmed Yerima- headed committee said the NNPC  was breaching Section 11 (g) of the Public enterprises ( Privatisation and Commercialization) Act 1999, which gives the National Council on Privatisation the power to do such

    Members of the committee said the NNPC shoukd suspend outrightly the proposed restructuring/Privatisation of the four refineries because of the breach of the regulations in the Bureau of Public Enterprises (BPE) as well as the Presidency’s delay in inaugurating the National Council on Privatisation (NCP).

    The committee said formally communicate President Muhammadu Buhari on the need to adhere to due process and avoid pitfall of commercialisation and privatisation exercises that were made in the past.

    The Committee noted that breach of policy guidelines and extant regulatory framework and undue rivalry among Government agencies is giving investors concern.

    According to NNPC document submitted to the Committee and obtained by our Correspondent, “in 2015, the refineries posted combined losses of N82 billion and processed only 8 million barrels of crude in total.”

    At the meriting yesterday, the failure of the NNPC management to present documents showing the approval allegedly given by the President for the proposed improvement of the refineries’ capacity utilisation to 80% within one year on the basis of the subsisting ownership structure, made members of the committee angry.

    Also the $50 million agreement signed by NNPC with a Chinese company, without any clear work plan got the disapproval of the lawmakers.

    Group Executive Director (Refineries) Anibor Kragah, who spoke for NNPC, said the report on the privatisation of the refineries, was not true.

    According to him, the “proposed investment proposals do not involve commercialisation or any transfer of ownership, assets, shares or control of the three refineries NNPC owed refining companies and are fully aligned with the current administration’s drive to ensure that the midstream and downstream sectors of the Nigerian Oil and Gas industry become self-sufficient in refining of petroleum products in the shortest time frame to ensure the country’s economic growth.

    “The need to rehabilitate the refineries is also in alignment with the aspirations of the National Assembly as communicated to NNPC at several engagements.”

    The refineries, he said, have recorded very poor performance over the last decade (30% average capacity utilisation vs global benchmark of 90%).

    He said NNPC does not need to subject the process to BPE approval, adding that that “BPE also shared its concerns on the viability of utilising JV arrangements for the rehabilitation exercise and the potential implications of the proposed activities on any FGN privatisation plans in future.”

    The exercise, Kragah said, has been put on hold in line with the directive of the House, adding that the Corporation has so far placed tender for investors to expressed interests.

    Vincent Akpotaire, BPE acting Director General however denied knowledge of the process, saying the privatisation of the refineries has always been part of the Bureau’s work plan tagged ‘potential transaction’.

    According to him, due to the political mood at the time due to the death of late President Umaru Yar’Adua, previous exercise for privatisation of 51% equity stake of both Kaduna and Port Harcourt refineries to Bluestat Oil Services Limited (preferred bidder) for $561 million and $160 million were truncated.

    Sales of the refineries were cancelled and the bid money refunded with accrued interests paid to the two bidders.

    He said there is the need to review the funding challenges in the oil and gas sector,

    “The glaring inefficiencies in the sector coupled with the bureaucratic nature of NNPC that the JV model has a gloomy future is very unlikely to succeed given the that it is the same agency and people that have been unable to run the refineries that will be called upon to regulate and supervise the joint venture operations.” Akpotaire said.

    Chairman of the committee on commercialisation and privatisation, Ahmed Yerima in his ruling directed BPE to take over the process and also directed NNPC to suspend all the activities put in place.

    He said without the relevant regulatory agencies, the committee House will not support the project.