Business - Business & Economy - News - September 5, 2022

Nigerian govt. inaugurates 4 groups to revive ailing enterprises

MEDIATRACNET

Four Technical Working (TWGs) Groups to undertake the revival of some ailing enterprises in the Nigerian economy have been inaugurated.

The four groups are those for the Automobile, Housing (Bricks and Clay), Mines and Steel as well as Oil Palm sectors.
Inaugurating the groups on Friday in Abuja, the Director General of the Bureau of Public Enterprises (BPE), Alex A. Okoh, said the initiative was in consonance with the ease of doing business in Nigeria and the Federal Government’s Economic Recovery and Growth (ERGP) objectives.

Okoh who was represented by the Director of Agriculture and Natural Resources at the Bureau, Ignatius O. Ayewoh said the inauguration was a culmination of the efforts since 2018 by various stakeholders to revive non-performing privatised enterprises in the country.

He said each of the group is expected to review and implement a strategic roadmap for the resuscitation of ailing enterprises in the country.

In discharging its supervisory duties on privatised enterprises through the instrumentality of result-based monitoring and evaluation (RBME), he said BPE discovered that about 16 percent of all the privatised companies were non-performing.

The result of the finding, he said, was submitted to the National Council on Privatisation (NCP) in 2018 and to the Senate Committee on Privatisation in 2020, leading to a meeting of the relevant stakeholders in the ailing enterprises in July, 2018.

The Terms of Reference (TORs) for the Working Groups, the BPE DG said, has the includ to conduct diagnostic studies on the affected enterprises, to identify their current status (operational and financial positions) and conditions in terms of ownership, share structure and capacity utilisation.
Also, they are to prepare a Business Plan that meets the current sectoral requirements, and examine the challenges in the sectors.

They are to develop a comprehensive five-year, (2023 – 2027), Turnaround Programme for each of the non-performing enterprises; review and advise the Federal Government on the processes and implementation Turnaround Programmes and determine the potential and economic viability of the sectors, among others.
The Director, Post-Transaction Management at the BPE, Toibudeen Oduniyi, urged the members of the various groups to contribute their wealth of experience and expertise for the actualisation of the much-desired revitalisation of the non-performing Enterprises for the economic growth of the country.

The representatives of the various committees thanked the Bureau for selecting them to work on the committees and promised to work for the betterment of the nation’s economy.

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