House of Representatives has resolved to investigate activities of the Bureau of Public Enterprises (BPE) in the privatisation and commercialisation of Public Enterprises from 2019–2023, during the second term of former President Muhammadu Buhari.
This followed the adoption of a motion sponsored by Hon. Hassan Shehu Hussain, from Kano at plenary, yesterday.
Presenting the motion, Hussain said the Federal Government of Nigeria commenced the privatisation and commercialisation of public enterprises in 2000.
He also noted that during the period under review; about 80 public enterprises were privatised through various modes of privatisation including core investors, concessions, assets sales, initial public offers (IPO), among others.
“Aware that BPE privatised in 2019, 29% of residues of the Federal Government’s shares in Geregu Power Plant to the core investors to upgrade it to a combined cycle for a total sum of N13,134,375,000.
“Also, aware that BPE without the investors fulfilling their obligations to upgrade the plant to a combined cycle sold an additional 20% of the balance of shares meant for IPO to the Nigerian Public on the Nigerian Stock Exchange to the same investor in 2021,” he said.
The lawmaker expressed worry that the Geregu Power Plant may never be upgraded to a combined cycle by the investors since BPE has removed the Public Enterprises from Post Privatization Monitoring.
“Also worried that the balance of N78 billion between Afam Power and Afam Three Fast Power remains outstanding though, the parties signed the Share Sale Purchase Agreement in 2020 and only 25% of the purchase consideration was paid and a 100% handover to investors on the condition that the balance will be paid upon commissioning of the Afam Three Fast Power which was equally done by former Vice President, Professor Yomi Osinbanjo before leaving office.
“Concerned that the Federal Ministry of Justice recently blocked the signing of the Zungeru Power Plant Concession Agreement, which would have generated $350million US Dollars in concession fees on the ground that there was no express approval by the Federal Executive Council (FEC);
“Also concerned that the Current Director-General of BPE has been ordered to be remanded in Kuje prison for 30 days due to his refusal to implement a Supreme Court decision in Aluminum Smelter Company of Nigeria (ALSCON) transactions,” Hussain added.
