The Bureau of Public Enterprises (BPE) has revealed its intention to sell the remaining 40% government shares in electricity distribution companies (Discos) on the capital market in 2024. Mr. Alex Okoh, the Director-General of BPE, shared this information during a media chat in Abuja, mentioning that the original intent was to democratize ownership and allow more Nigerians to invest in the Discos. Additionally, other assets, including Eleme Petrochemicals, Nigeria Re-Insurance, Nicon Insurance, and Nigeria Machine Tools in Osogbo, may also be taken to the market in 2024.
Key Points:
- Discos Ownership: The government aims to list its 40% stake in Discos on the stock market, enabling Nigerians to purchase shares and broadening ownership beyond a core group of investors.
- Democratizing Ownership: The move aligns with the government’s goal of democratizing the ownership of state-owned entities, promoting public participation in the capital market.
- Other Assets: In addition to the Discos, BPE plans to take Eleme Petrochemicals, Nigeria Re-Insurance, Nicon Insurance, and Nigeria Machine Tools to the capital market in 2024.
- Challenges with Some Assets: Issues, such as disputes with former core investors, pose challenges in taking certain entities to the market, as seen with Nigerian Re-Insurance and Nicon Insurance.
- Active Year in 2024: The BPE anticipates a more active year in 2024, working to resolve challenges and navigate stakeholder concerns.
- Government Revenue Target: The Federal Government aims to generate N298.4 billion from the privatization of government assets in 2024.
- Openness to Privatization: The new administration, led by President Bola Tinubu, is reportedly more open to privatization efforts.
- Denial of Share Swap Plans: The BPE boss denied knowledge of government plans to swap shares of power distribution companies with state governments, emphasizing the complexity of ownership structures involving the Federal Government, states, and labor unions.
Conclusion: The BPE’s plans to sell government shares in Discos and other assets on the capital market signify a commitment to privatization, economic reforms, and increased public participation. The move aligns with the government’s goal of leveraging the capital market to raise funds and encourage broader ownership of key assets in the country.
