The Federal Government revealed on Tuesday that the Ajaokuta Steel Company, Trade Fair Complex (TFC), and other blue-chip enterprises are among the 91 enterprises to be privatised or concessioned soon.
Others include Tafawa Balewa Square (TBS), refineries, and several other enterprises, including five international airport terminals.
Speaking to newsmen in Abuja, the Director-General (DG) of the Bureau of Public Enterprises (BPE), Mr Ayodeji Ariyo Gbeleyi, said that the 91 enterprises will be subjected to a rigorous exercise and will be taken one at a time.
According to him, before the enterprises are sold, BPE will involve technical advisers, financial advisers, and legal advisers.
“We expect, from the 91 enterprises, that it will be subject to a very rigorous exercise. One transaction at a time. You take them sectorally. For example, if we are talking about the five international airport terminals, of course, we will engage the Ministry of Aviation and Aerospace Development. It is the business case or the pre-feasibility study that will say to you what you can expect in terms of concession fee from terminal operators.
“We can’t sit here and determine that. That is why we bring in advisers to assist us—whether as a financial adviser, whether as a legal adviser to review the legal regulatory framework, whether as technical consultants to even review the operational realities of the infrastructure and the business case. So, it is that business case that will determine the structure and the nature of the transaction. Some transactions may lend themselves to a different structure, while another one will lend itself to another structure. And until you start, you cannot get to the nitty-gritty of what value and what to expect. For example, if you want to enlist your entity on the stock exchange, you will engage investment bankers, you will engage lawyers, you will engage technical advisers. And based on their work, they will come up with a financial range and say to you that based on our analysis, this is the range of price you want to achieve. So, until we get to that phase for each of the transactions, we’ll now be able to tell you what to expect,” he said.
On the performance of key sectors of the economy, Gbeleyi also noted that telecommunications has a subscriber base of 169.3 million and a 78.11 per cent teledensity, contributing 14.4 per cent to Gross Domestic Product (GDP).
Also, the internet and broadband sectors show substantial growth, with 138.7 million and 104.1 million subscriptions, respectively, while the e-commerce market was valued at $15 billion in 2023, with projections reaching $33 billion by 2026.
“Pension reforms have amassed 10.79 million contributors and assets worth N24.63 trillion. Port reforms have led to the leasing of 26 terminals, attracting $2.5 billion in investments and reducing cargo dwell time to 4-7 days.
“In aviation, the Nigerian Aviation Handling Company’s (NAHCO’s) turnover increased from N3.25 billion in 2006 to N53.5 billion in 2024, while Sky Aviation Handling Company’s (SAHCO’s) turnover rose from N2.31 billion in 2009 to N28.9 billion in 2024. These reforms and data points underscore the BPE’s strategic initiatives to enhance Nigeria’s economic landscape, addressing challenges and setting a trajectory for future growth,” he said.
Port concession, the DG noted, attracted over $2.5 billion at the time of concessioning in 2005 and 2006, with follow-up investments in terminal and infrastructure upgrades, cargo handling equipment, Information Communication and Technology (ICT) systems, security architecture, and skills transfer, which helped in modernising port operations and making them much more competitive.
“Of course, the Nigerian Ports Authority (NPA) revenue profile is also growing as a result of this exercise—taxes, duties, and associated revenues—are also increasing with throughput improving and also improving contribution to the treasury,” BPE explained.