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Privatisation:
Twelve firms to go next year
By Chukwudi
Achife,
Bureau Chief,Enugu
The Bureau of Public Enterprises (BPE)
has said it hopes to complete the privatization of about twelve major federal
government owned companies 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 include 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).
BPE Director General, Dr Julius Bala, who
disclosed this at a workshop for labour leaders in the southeast zone in Enugu
said financial bids for the Delta Steel Company (DSC), Aladja, Ore Irele Oil
Palm Company and Katsina Steel Rolling Mill, were opened in June September and
November this year.
He said the BPE has received 110
Expressions of Interest in respect of concessioning of the Nigerian Ports. Out
of this number, he said, a total of 94 firms and consortia were pre-qualified
for the available 24 concessions while a total of 61 bidders undertook the Data
Room process for the concession of three terminals in Apapa, adding that the
bureau expects to concession the Apapa ports before the end of the first quarter
of 2005.
Dr Bala said transactions were concluded
on three companies including the Daily Times and the National Trucks
Manufacturing co. (NTM) in the past one year. He stated that the bureau was
trying to resolve the dispute between it and one of the shareholders of West
African Refinery Company Ltd (WARCO) which has prevented the company’s
hand over to its buyer, Majestic Oil.
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.
He said 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.
Dr Bala also stressed that employees of
privatized 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.
He said, “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 bee reserved fro
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”.
The BPE boss further urged labour to
articulate a vigorous participatory strategy aimed at ensuring the all round
cultivation of support and success of the programme in various stages of its
implementation stressing that such a vision must be compelling and clear enough
to help guide policy development.
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