NATIONAL COUNCIL ON PRIVATIZATION (NCP) | FUNCTIONS AND POWERS OF THE COUNCIL

The NCP is a think tank sponsored by the Nigerian government to determine the political, economic and social objectives of the Privatization and Commercialization of Nigerians Public Enterprises. In other words it is the apex body charged with the overall responsibility of formulating and approving policies on Privatization and Commercialization.

The council was established and inaugurated in July 1999 under the Tenureship of President Olusegun Obasanjo. S. 9 (1) of the Act provides for its establishment.
The legal framework, for the program is the Public Enterprises (Privatization and Commercialization) Act and it consists of the Vice President as Chairman, the Minister of Finance as vice chairman; the Attorney-General of the Federation and Minister of Justice; the Minister of Industry; and  a host of others as provided in S. 10 of the Act. S. 9 (2) of the Act provides that the council may co-opt the supervising minister of an affected Public Enterprise to attend relevant meeting of the council. 

FUNCTIONS AND POWERS OF THE COUNCIL
Being the supreme regulatory body in charge of the Privatization and Commercialization program, the Council is charged with multi-various and supervisory functions and powers to do the following.
(a)           To determine the political, economic and social objectives of            Privatization and Commercialization of Public Enterprises.
(b)        To approve policies on Privatization and Commercialization.
(c)           To approve Privatization and choice of strategic investors
(d)        To approve guidelines and criteria for valuation of Public         Enterprise which should be by public or private issue or otherwise             and advise the Government of the Federation accordingly.
(e)           To approve the legal and regulatory frame work for the           Public Enterprises to be privatized.
(f)            To determine whether the shares of a listed Public        Enterprise should be public or private issue or other wise    and advise the Government of the Federation accordingly.
(g)           To determine the time and when a Public Enterprise is to be   privatized.
(h)        To approve the prices for shares or assets of the Public Enterprise to be offered for sale.
(i)             To review, from time to time the socio-Economic effect of      the program of Privatization and Commercialization and          decide on appropriate remedies.
(j)             To approve the appointment of Privatization advisers and      consultants and their remuneration.
(k)           To appoint as and when necessary committees comprising      persons from private and public sectors with requisite             technical competence to advise on the Privatization or    Commercialization of specific Public Enterprises.
(l)             To approve the budget of the council.
(m)      To approve the budget of the Bureau.
(n)        To supervise the activities of the Bureau and issue directions
from the implementation of the Privatization and Commercialization program.
(o)        To receive and consider for approval the audited accounts of   the Bureau.
(p)        To submit to the President of the Federal Republic of Nigeria    in each year a report on the activities of the council and       Bureau.
(q)        Receive regular and periodic report from the Bureau on             program implementation and give appropriate directions.
(r)            Perform such other functions as may from time to time be necessary to achieve its objectives[1].
Note here that the basic problems the Nigerian populace had and still have with the Privatization and Communication program was the question of transparency.
It was in the beginning of the program as it still is today in the lips of everybody that Privatization meant nothing more than Obasanjo and his cliques taking over the Nigerian Public Enterprises and converting them into their own private business. I too hold this view.
In the face of these doubts, one would expect a transparent and incorrupt Chief Executive or the National Council on Privatization in such a way that it will be substantially independent of both the Chief Executive and the National Council. But no such effort was made here.
It is pertinent to note here that twelve out of the thirteen members of the Council are members of the National Executive Council. The eleven ministers in the Council are appointees of the President and the Vice President who is the Chairman of the Council is a loyalist to the President, as we know. The thirteenth member of the Council is the Director General of the Bureau for Public Enterprises. He too is an appointee of the President[2].
The fact is everywhere that President Obasanjo made all his Ministers and appointees sign undated letters of resignation. The essence is that the moment a Minister appointee disagrees with him, he shall put a date on the letter and carry it that the Minister has resigned.
The point I am making here, is that the Council is not independent and cannot therefore be transparent and efficient. Shares and assets of privatized companies cannot be sold by the Council the way the President does not approve of, if any members of the Council dares disagree with His Excellency, he loses his job.
The insecurity of the tenure makes them comfortable with being stooges of the President. So the fear of the populace that President Obasanjo and his allies will eventually buy and own up all the Public Enterprises in this country has not been removed.
So I submit with due respect, that the Act be amended so as to constitute a new Council that will be independent of the National Executive Council. Unless this is done, the Privatization thing can never stand convincing to anybody.




[1] S. 11 of the Public Enterprises (Privatization and Commercialization) Act Cap 38 LFN 2004
[2] S. 17 (1) of the Public Enterprises (Privatization and Commercialization) Act Cap 38 LFN 204.
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