ENUGU—THE Bureau of Public Enterprises (BPE) said yesterday that the privatization of about 12 major Federal Government owned companies would be completed by the end of next year just as it assured the labour movement that the policy would not have any adverse effects on the welfare and interests of workers in privatized companies.
The companies are the National Insurance Corporation (NICON); National Fertilizer Company of Nigeria (NAFCON), Volkswagen of Nigeria (VON), NICON Hilton Hotel and Peugeot Automobile of Nigeria (PAN). Others are Fertilizer Super Phosphate Company (FSFC), Eleme Petrochemicals Co Ltd, Port Harcourt Refinery, Oil Service Companies, Pipelines and Products Marketing Company (PPMC) and Nigerian Mining Corporation (NMC).
Director General of the Bureau, Dr Julius Bala who disclosed this at a workshop for Labour leaders in the South East zone in Enugu said the bureau has entered the third phase of the programme, which encompasses the privatization of major enterprises in the monopoly sectors of the economy including NEPA and NNPC subsidiaries adding that such companies require major pre-divesture sector reform.
He assured the labour leaders that the privatization policy would not have a negative effect on the employment of workers, stressing that empirical findings from similar exercises testified to the qualitative upsurge in the realm of business expansion, growth in employment rates and higher job satisfaction and mobility.
Bala stated that data gathered on the reforms in the telecom sector for example showed that net job losses as a result of entry of private operators have been offset by job increases adding that the injection of long awaited dynamism and refreshing vitality in efficient ways of doing business have minimized the fear of job losses in the post privatization period.
He stressed that employees of privatized companies were statutorily part owners of the new businesses by virtue of the Employee Share Ownership Scheme disclosing that the recent policy decision taken by the National Council on Privatization (NCP) has resulted in a phenomenal 1000% increase in employee shareholding stakes of Federal Government shares that may be set aside for company employees.
"When translated in terms of actual value of overall shares automatically reserved for workers at the macro-level of the economy particularly in the first phase of the privatization programme, it would be seen that over 30 million shares have been reserved for workers. The understanding of government is that if workers become part owners, much of their objections to divestment will soften. As owners, they will share in the profits to be made by the firm, have a corresponding say in management decisions and enjoy greater job security if the firm prospers as a result of greater worker productivity," he said.
