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.