80% of Privatised Firms Moribund, Says Sambo

By Ahamefula Ogbu

13 May 2011

The Federal Government has lamented that more than 80 percent of the privatised companies in the country are not working, saying it was defeating the purpose of the scheme which is to create employment.

To address the issue, Vice President Namadi Sambo Thursday at the meeting of the National Council on Privatisation (NCP) directed the Bureau of Public Enterprises (BPE) to ensure that all the companies privatised in the last six months were functioning.

Sambo noted that the essence of selling the companies was to bring in new and efficient managements to run the concerns which, when operational, would provide jobs for teeming youths and insisted that the companies must come alive.

The NCP also approved in principle the N2,705,948,776.60 negotiated claim by staff of Aluminium Smelter Company of Nigeria (ALSCON) subject to availability of funds within two weeks of the approval.

Sambo, has urged the Bureau of Public Enterprises (BPE) to make sure that all the government companies privatised in the last six months are functioning properly.

Sambo, who chairs the Council. complained about the prolonged process the exercise has taken, spanning nearly 10 years, without successfully concluding due to some obvious problems he wants BPE to resolve.

“The reason government is selling these companies is that it should have good management and should be viable to create jobs,” he said.

http://www.thisdaylive.com/articles/80-of-privatised-firms-moribund-says-sambo/91285/

Privatisation: FG threatens to penalise non-functional firms
On May 13, 2011 · In News

BY DANIEL IDONOR

ABUJA-Chairman, National Council on Privatisation, NCP, Vice President Namadi Sambo, yesterday raised an alarm that about 80 per cent of public businesses so far privatised in the last six months had refused to start full operation.

Sambo, who disclosed that the sad development was adversely affecting President Goodluck Jonathan’s job creation agenda for Nigerian youths, has urged the Bureau of Public Enterprises, BPE, to ensure that all the affected business concerns resumed operations without further delay.

The Vice President, who gave the charge at the NCP meeting, said the essence of privatisation was to ensure that the companies were working, thereby generating employment for Nigerian youths.

He said: “The reason government is selling these companies is to ensure better management and veritable avenues for jobs creation. The BPE should make sure all the companies sold in the last six months are working properly.”

He decried the process of privatisation which had been going on for about 10 years without the required success due to some perceived problems, saying 80 per cent of the companies that had been privatised were not working.

http://www.vanguardngr.com/2011/05/privatisation-fg-threatens-to-penalise-non-functional-firms/

‘BPE should ensure proper functioning of companies’
By Ihuoma Chiedozie, Abuja
Friday, 13 May 2011


Vice-President Namadi Sambo has directed the Bureau of Public Enterprises (BPE) to make sure that all the government companies privatised in the last six months are functioning properly.

The Vice-president gave the directive on Thursday at a meeting of the National Council on Privatisation in the State House.

Sambo stressed that “the essence of privatisation is to ensure that the companies are working and are also able to offer employment to Nigerian youths.”

Continuing, he said, “The reason government is selling these companies is that it should have good management and be viable to create jobs.

“The BPE should make sure all the companies sold in the last six months are working properly.”

The Vice-president decried the process of privatisation which he said had been going on for about ten years and had not been successful due to some perceived problems.

He noted that 80 per cent of the companies that had been privatised were not functioning properly.

Addressing issues in the transport sector, Sambo said one of the main problems at the nation’s ports was the concession yard, noting that “when containers get to this point they become a problem.”

According to him, most of the people who are seeking concession do not have adequate documents and this causes unnecessary delay, and as a result, the containers are practically abandoned.

The Vice-president also noted that most times there were no cranes to lift containers at the concession yard and importers were made to pay heavy demurrage.

Sambo said this is caused by the deficient nature at which the ports were managed, and importers would charge the cost of goods according to the amount of demurrage they paid.

He therefore directed the minister of transport to visit the ports personally to make sure the situation is corrected.

The Vice-president at the meeting set up a committee to make recommendations to the NCP on ways to resolve any overlapping issues that might exist between the Infrastructure Regulatory Commission and the BPE.

The committee comprises the ministries of finance, justice, environment, the BPE, ICRC, the Central Bank of Nigeria and representative of the Legal Department of the Vice-President’s office.

The meeting approved, among other things, the financial statements of the BPE for 2007 and 2008 as presented, and called on the Bureau to ensure timely submission of the reports in future.

It also granted approval in principle for the payment of the sum of N2,705,948,776.60 negotiated ALSCON staff claim subject to the release of funds for the payment by the BPE within two weeks.

On the divestiture of the five per cent Federal Government’s shareholding in Eleme Petrochemicals Company Limited, the National Council on Privatisation requested that it should be furnished with further details to enable it to arrive at a decision.

It approved the further transfer of assets and liabilities to Oloronshogo, Omotoso and Geregu Power plants, and also ratified the anticipatory approval earlier granted on power sector reform.

http://www.punchng.com/Articl.aspx?datex=01/15/ReportComment.aspx?com=240294&theartic=Art201105133172440

johnie:

80% of Privatised Firms Moribund, Says Sambo

The Federal Government has lamented that more than 80 percent of the privatised companies in the country are not working, saying it was defeating the purpose of the scheme which is to create employment.

To address the issue, Vice President Namadi Sambo Thursday at the meeting of the National Council on Privatisation (NCP) directed the Bureau of Public Enterprises (BPE) to ensure that all the companies privatised in the last six months were functioning.

Sambo, has urged the Bureau of Public Enterprises (BPE) to make sure that all the government companies privatised in the last six months are functioning properly.

Sambo, who chairs the Council. complained about the prolonged process the exercise has taken, spanning nearly 10 years, without successfully concluding due to some obvious problems he wants BPE to resolve.

Who are the new owners of these companies?

johnie:

‘BPE should ensure proper functioning of companies’

Addressing issues in the transport sector, Sambo said one of the main problems at the nation’s ports was the concession yard, noting that “when containers get to this point they become a problem.”

According to him, most of the people who are seeking concession do not have adequate documents and this causes unnecessary delay, and as a result, the containers are practically abandoned.

The Vice-president also noted that most times there were no cranes to lift containers at the concession yard and importers were made to pay heavy demurrage.

Sambo said this is caused by the deficient nature at which the ports were managed, and importers would charge the cost of goods according to the amount of demurrage they paid.

He therefore directed the minister of transport to visit the ports personally to make sure the situation is corrected.

http://www.punchng.com/Articl.aspx?datex=01/15/ReportComment.aspx?com=240294&theartic=Art201105133172440

Who was the yard concessioned to?

EVALUATING NIGERIA'S PORT CONCESSION ARRANGEMENT
Source: NBF News - NBF News General News | Fri, 03 Sep 2010

The litany of complaints over the performance of most terminal operators has compelled the Federal Government to take steps to evaluate the activities of the port concessionaires. SULAIMAN ADENEKAN examines how the ports have fared

Nigeria currently has 26 ports. The first Nigerian port was inaugurated in the pre-independence period and its establishment dates back to the middle of the 19th century.

[b]Nigerian ports were concessioned in 2006 as a result of an inefficient port system, high port charges, long turnaround of cargoes and ships and high level of corruption.

In spite of concessioning of the ports, not much improvement seems to have been noticed at the nation's ports. Importers had at various times complained of high port charges, lack of equipment by the terminal operators and other corrupt practices. This situation has made the customs agents to embark on strike action at various times.

The terminal operators have also complained of lack of adequate infrastructures at the ports, thereby impeding their business operations, as the environment under which they operate is not conducive and this increases the cost of doing business.

The Senate Committee on Marine Transport headed by Senator Gbemi Saraki, condemned the process leading to the 2006 port concession programme.

She alleged that there were irregularities in the amount that was paid by the terminal operators. Saraki also said that the terminal operators had reneged on their part of the agreement as they failed to bring in their investments.

Saraki ,therefore, called for a review of the deal, alleging that there was insincerity in the whole arrangement.

However, the Minister of Transport, Alhaji Yusuf Suleiman, recently inaugurated a committee tagged 'Port Reforms Evaluation Committee' aimed at reforming the 26 terminals in the country.

Suleiman said, 'Government's reform agenda for the sector was therefore targeted at improving; enhancing management capability of enterprises; creating a conducive institutional; legal and regulatory framework; developing private sector participation in financing, management and operations of port facilities.

'Other related objective of the reform is to increase the efficiency of port operations,decrease the costs of ports services to the users,decrease the costs to the government for the support of a viable port sector, boost economic activity and accelerate development; and make Nigeria the hub for international freight and trade in West Africa. [/b]

'I have every confidence that this committee which has been carefully chosen will do a thorough job and come up with a decisive report which will form the basis for further government policy direction on the issue and proffer lasting solution to emerging challenges.'

He said the government decision to concession the ports as part of a reform programme was informed by the urgent need to address the declining performance of Nigerian Ports which were adjudged to be inefficient and unattractive to shippers.

The Managing Director, Nigerian Ports Authority, Mallam Abdul Salam Mohammed, said that the ports were concessioned to increase efficiency in operations, decrease cost of port services to stakeholders, reduce cost to the government for the support of viable port sector, and attract private sector participation so as to free public resources for public services

This objective, according to him, led to the invitation of bidders in December 2003 and 110 applications were received while 94 of the applicants were pre -qualified and issued bid documents. Most of the terminals were handed over in 2006.

According to him, the role of the private sector (terminal operators) includes cargo operations, port labour, investment in equipment, investment in terminal maintenance and insurance of concession assets.

That of the NPA includes port planning, licensing and control, port development, technical regulations, marine services and channel management.

http://www.thenigerianvoice.com/nvnews/33620/1/evaluating-nigerias-port-concession-arrangement.html

NPA hindering port concession success, stakeholders allege .
Monday, 04 April 2011
Amaka Anagor

The Nigerian Ports Authority (NPA), recognised under the concession agreement signed in 2006 as landlord of Nigerian ports, is alleged to be a direct factor that could hinder the ultimate success of port concession. BusinessDay investigation reveals that NPA has not been able to keep its part of the concession agreement that handed over the cargo handling services to the concessionaires, which analysts said is capable of sabotaging the port reform programme.

Before concessioning of the ports, all port functions were domiciled in NPA and according to close watchers of port operations, it did not show itself as being capable of discharging its functions. That is why the Federal Government decided to concession the operational aspect of the ports to private operators who it believes can handle them commercially and efficiently.

Emeka Akabuogu, a maritime lawyer, in an exclusive interview with BusinessDay, said that the concession has achieved some targets, explaining that private operators were allowed to make some considerable investments into the system to make it better than it was in the past.

According to him, “As an international gateway, the terminal operators have made sophisticated changes that have added good value in the area of equipment and relevant infrastructure that ensures efficient day to day activities in the port”.

[b]The performance of NPA in actualising the concession objectives, he said, has been extremely inefficient, having failed in its responsibility of providing support services in the port to help the concessionaires, he said.

Akabuogu said: “NPA has not been providing adequate lighting systems and good port access roads; these are key infrastructural services which they are supposed to provide under the concession agreement. The worst is the failure of the authority to effectively undertake dredging of water channels as required, which has automatically translated to more or less inability for some ports to do business effectively”.

Calabar port, he pointed out, operates with a very shallow draft, such that many reasonable sized vessels are unable to come into the port. This has restricted a lot of commercial activities, he said.

“The dredging we are emphasising is not the type that demand much but that which can be easily done within the operational budget of the authority. Its inability to carry out this responsibility shows that NPA is compromising concession process; therefore it has more to do to ensure that the system works well. The concessionaires, to some extent, have failed to keep to their own part of the agreement which was partly caused by the inability to access the kind of support needed from the NPA. Some of the operators are already investing considerably, some have over-invested comparative to the commercial level to which they are operating while some have not invested effectively, but they are getting good commercial returns”, he emphasised.[/b]

In line with Akabuogu’s stand, the Port Reforms Evaluation Committee (PREC) report as informed in ‘Ships & Ports Weekly’ said that “NPA as technical regulator has demonstrated not only limited capacity but also poor corporate governance culture, as the organisation failed to keep its side of the agreement, particularly as it affects dredging of water channels, among others”.

The national president of National Association of Government Approved Freight Forwarders (NAGAFF), Eugene Nweke, told BusinessDay that concession is a laudable economic concept that brings about economic growth and development through public private partnership because it enables private operators to bring in their investment into the country.

Nweke said the level at which the terminal operators are investing in the ports should be commensurate with the turnover they are making, saying that is why the government through its agency (NPA) has the obligation under the concession agreement to create a good port access road, pass the enabling laws like port and harbour law that is still before the National Assembly as a bill.


http://www.businessdayonline.com/NG/index.php/typography/the-news/19972-npa-hindering-port-concession-success-stakeholders-allege

:/

I know Atiku, as VP, was the chairman of the NCP but VP Sambo says there particular companies were privatised in the last six months. These companies could'nt have been bought by Atiku.

I have searched for the list of companies privatised recently and the nerw owners without success.

Anyone have it?

Port concessioning was hurriedly done in 2006 so maybe Atiku has some hand there. Can't be sure.