This section contains a catalogue of
enterprises to be privatized or commercialized. Since Privatization and
Commercialization means different things, I shall split the section into two
“A” for Privatization and “B” for Commercialization.
PRIVATIZATION
S.1 (1) of the Act provides that the
enterprises listed in Part 1 of the
first schedule of the Act shall be partially privatized in accordance with
the provisions of the Act. Enterprises under this schedule cover those in the
telecommunications sectors, Petroleum sectors, Fertilizer manufacturing
companies, Machine tools, Gas, Steel and Aluminum sector, Mining and Solid
mineral sector, Media companies, Insurance companies, Transport(Aviation)
companies.
The schedule provides that in any Enterprise
under the sector above, the maximum strategic investor participation as
percentage after Privatization shall be 40%.
The maximum Federal Government
participation as percentage after Privatization shall be 40%. And the Nigerian
individual participation shall be 20% after Privatization.
The Act therefore lists the following
enterprises,
(1)
Nigerian Tele Communication PLC,
(2)
Nigerian Mobile Tele Communication LTD
(3)
National Electric Power Authority
(4)
Port-Harcourt Refineries 1&2
(5)
Kaduna Refinery and Petrol-Chemicals
(6)
Warri Refinery & Petrol-Chemicals
(7)
Eleme Petrol Chemicals Co. Ltd
(8)
Pipeline Product and Marketing Co. Ltd
(9)
Nigerian Petroleum Development Co. Ltd
(10)
Federal
Super phosphate Fertilizer Co. Ltd
(11)
National
Fertilizer Co. Ltd
(12)
Nigerian
Machine Tools Co. Ltd
(13)
Nigerian
Gas Co. Ltd
(14)
Jos
Steel Rolling Mill Co. Ltd
(15)
Kaduna
Steel Rolling Co. Ltd
(16)
Oshogbo
Steel Rolling Co. Ltd
(17)
Ajaokita
Steel Co. Ltd
(18)
Delta
Steel Co. Ltd
(19)
Aluminum
Smelter Co. Ltd
(20)
Nigerian
Coal Corporation and Subsidiaries
(21)
Nigerian
Mining Corporation and Subsidiaries
(22)
Nigerian
Uranium Co. Ltd
(23)
Nigerian
Iron Ore Mining Co. Ltd
(24)
Daily
Times of Nigerian PLC & Subsidiaries
(25)
New
Nigerian News Paper Ltd
(26)
Nicon
Insurance Co. PLC
(27)
Nigerian
Reinsurance PLC
(28)
Federal
Air Port Authority of Nigeria
(29)
Nigerian
Dock Ltd
(30)
Nigerian
Airways Authority
(31)
Nigerian
New Print Manufacturing Co. Ltd Oku Ibokun
(32)
Nigerian
National Paper Manufacturing Co. Ltd
(33)
Nigerian
Paper Mills
(34)
Sunti
Sugar Co. Ltd
(35)
Lafia
Sugar Company Bacita
On the other hand, S. (2) of the Act provides that all the
enterprises listed in part 11 of the
first schedule of the Act shall be fully privatized. Enterprises covered in
the list are those of infrastructure and utility companies such as cement
companies, commercial and merchant banks, Agro-allied sector, Motor Vehicles
and Truck Assembly Companies and Hotels. Before the Privatization Program,
Government participation in these companies ranges from 10% it held in Nigerian
Cement company Limited Nkalagu to the 100% Government ownership in FESTAC 77
Plc.
The Schedule one provides that after
Privatization, Government ownership of and participation in these enterprises
shall come to nil. Only strategic investors and Nigerian individuals shall own
and participate in them. The following is a list of Commercialized Enterprises.
(1)
Unipetrol PLC
(2)
Nigerian Oil and Chemical Company Ltd
(3)
African Petroleum Plc
(4)
Ashaka Cement Co. Plc
(5)
Benue Cement Co. Plc
(6)
Northern Nigerian Cement Co. Plc
(7)
Nigerian Cement Co. Ltd Nkalagu
(8)
Calabar Cement Co. Ltd
(9)
West African Portland Cement Plc
(10)
Afri
Bank Nigerian Plc
(11)
Assurance
Bank Plc
(12)
FSB
International Bank Plc
(13)
International
Merchant Bank Plc
(14)
NAL
Merchant Bank Plc
(15)
AYI-Eko
Oil Palm Co. Plc
(16)
Opobo
Boat Yard
(17)
Nigerian
Romania Wood Industries Ltd
(18)
Anambra
Motor Manufacturing Co. Ltd
(19)
Peugeot
Auto Mobile of Nigeria Ltd
(20)
Volkswagen
Nigerian Ltd
(21)
Leyland
Nigerian Ltd
(22)
Nigerian
Truck Manufacturing Co. Ltd
(23)
Steyr
Nigerian Ltd
(24)
Nigerian
Hotels Ltd and
(25)
Festac
77 Plc.
The Council established by the Act is
employed to alter, add, delete or amend these lists from time to time by order
published in Gazette[1].
MODE OF
PRIVATIZATION
Subject to the Provisions of S. 1(1) (F) (which empowers the council
to determine whether the shares of a listed Public Enterprise should be by
public or private issue…) an offer for the sale of the shares of a Public
Enterprise shall be by public issue or private placement as the case may be[2]. S.4 provides that a private enterprise
is required to be managed by the strategic investors as from the effective date
of the Privatization on such terms and conditions as may be agreed upon.
COMMERCIALIZATION
S.
6 (1) of the Act
provides that the enterprises listed in part 1 of the second schedule to the Act shall be partially commercialized in
accordance with the provision of the Act.
The enterprises covered in this schedule
are:
1.
Nigerian
Railway Corporation
2.
Cross
River Basin Development Authority
3.
Hadejia-Jamaare
River Basin Development Authority
4.
Niger
River Basin Development Authority
5.
Lower
Benue River Development Authority
6.
Ogun-Osun
River Development Authority
7.
Upper
Benue River Development Authority
8.
Sokoto-Rima
River Basin Development Authority
9.
Anambra
–Imo River Basin Development Authority
10.
Benin-Owena
River Basin Development Authority
11.
Chad
River Basin Development Authority
12.
Kainji
Lake National Park
13.
Federal
Radio Corporation of Nigeria
14.
Nigerian
Television Authority
15.
News
Agency of Nigeria
16.
Nigerian
Film Corporation
17.
Nigerian
Postal Service
18.
Old
Oyo National Park
19.
Gashaka
Gumi National Park
20.
Chad
Basin National Park.
21.
Yankari
National Park.
22.
Cross
River National Park.
23.
Niger
Delta Basin Authority.
24.
Niger
Delta Development Authority.
S.
6 [2] of the Act on
the other hand, says that all the Enterprises listed in part 11 of the 2nd schedule to the Act shall be fully commercialized. The following
are in the list:
1.
Nigerian
National Petroleum Corporation
2.
Tafawa
Balewa Square Management committee.
3.
Nigeria
Ports Authority
4.
Federal
Mortgage Bank of Nigeria
5.
Nigerian
Industrial Development Bank LTD [NIDB]
6.
Nigerian
Bank for Commerce and Industry LTD
7.
Federal
Mortgage Finance Co. LTD.
8.
Federal
Housing Authority
9.
Nigerian
Social Insurance Trust Fund
The council may from time to time by
order published in the Gazette amend the second
schedule to this Act[3]
so as to alter the category to which any Enterprise listed in that schedule
shall be classified. It is worthy of note that a Commercialized Enterprise
shall operate as a purely Commercial Enterprise and may subject to the general
regulatory power of the Government of the federation.
a.
Fix
the rates, prices and charges for its goods and services
b.
Capitalize
its assets
c.
Borrow
money and issue debenture stocks
d.
Sue
and be sued in its corporate name.
The Public Enterprise (Privatization and
Commercialization) Act Cap p. 38 LFN 2004 does not only make a catalogue
enterprises to be commercialized, it goes further to map out strategies meant
to enhance the achievement of its objectives under the scheme. This section is
an exposition of these strategies and other mechanism of enforcement.
Basic among those strategies is the
establishment of the National Council on Privatization and Commercialization of
the Bureau for Public Enterprises. The Establishment, tenure of office,
functions and power of the council and the bureau are what I shall discuss in
the next section.
[1]
S.1(3) Public Enterprises (Privatization and Commercialization) Act Cap 38 LFN
2004
[2] S.
2 (1) Public Enterprises (Privatization & Commercialization) Act Cap P. 38
L.G.N 2004
[3] S.6[3] Public Enterprises
[Privatization and Commercialization] Act Cap P. 38 LFN 2004