BPE says 37% of privatised enterprises ‘not performing’

Alex Okoh, director-general of the Bureau of Public Enterprises (BPE), says the bureau has privatised 142 enterprises from inception in 1993 to date — but 37 per cent of them are not performing.

Okoh spoke while receiving house of representatives committee on privatisation on an oversight visit to the bureau.

He said out of the privatised enterprises, 94 had been monitored, adding that 63 per cent of the enterprises were doing well while 37 per cent were not performing.

He attributed the poor record to operating business environment in the country in which many private or privatised public enterprises had closed down or relocated to neighbouring countries.

Okoh, however, said that the committee had commenced a thorough review of the non-performing enterprises to ascertain the issues affecting them.

“Eight were privatised through private placement, 41 through concession, two through debt/equity swap and 11 through sale of assets. Five are in agric mechanisation, eight in automobiles, seven in banking and insurance, six in brick making and six in the cement sector,” he said.

“The others are 10 in energy construction and services, 12 in hotels and tourism, eight in oil and gas, four in paper and packaging.

“Nineteen are in solid minerals and mining, seven in steel and aluminium, four in the sugar sector, 26 in marine transport sector, 19 in power and one in telecoms.”