Nigerian National Privatization Program Bureau of Public Enterprises Federal Republic of Nigeria Jun

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Nigerian National Privatization ProgramBureau
of Public EnterprisesFederal Republic of
NigeriaJune, 2000-April 2003United States
Agency for International DevelopmentInternati
onal Business and Technical Consultants, Inc.
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Bureau of Public EnterprisesFederal Republic of
Nigeria

• About the BPE
• Secretariat of the National Council on
  Privatisation (NCP)
• Implements the policies and decisions of the NCP

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Main Functions of the BPE
• Manages the privatisation of enterprises for the
  Federal Government of Nigeria, including the
  appointment of consultants, advisers, investment
  bankers, issuing houses/stockbrokers, solicitors,
  trustees, accountants and other professionals

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Main Functions of the BPE (contd)
• Prepares approved PEs for privatisation and
  commercialisation
• Advises on further public enterprises that may be
  privatised or commercialised
• Advises on capital restructuring needs of the
  PEs to be privatised

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Main Functions of the BPE (contd)
• Ensures the update of accounts of all
  commercialised enterprises for financial
  discipline
• Conducts effective post transactional performance
  monitoring and evaluation to ensure success

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Implementation of Phase II Nigerian National
  Privatization Program
• Phase 2a 63 Enterprises
• Financial Services - 4 Hotel Companies - 5
• Media Enterprises - 2 Communications. (NITEL) -
  1
• Transport and Aviation - 4 Steel, Oil Palm,
  Sugar, etc. - 47
• Phase 2b 26 Enterprises
• Financial Services - 3 Hospitality Tourism - 5
• Mining Minerals - 4 Comm. (NIPOST) 1
• Various Others 13
• Phase 3 Telecoms, Electricity, and more

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Economic Gains From Privatisation
• More responsive market-oriented economy
• Increased competitiveness of specific
  enterprises, sectors and economy as a whole
• Improved company efficiency
• Greater direct foreign domestic investment

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Institutional Political Gains from
  Privatisation
• World-standard agency procurement capability
• Substantial revenues from enterprise sales
• Substantial budgetary subsidy savings
• Frees government resources to be applied to
  health, education and other social services

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Characteristics of a Well-Functioning Procurement
  System
• Transparent
• Competitive
• Economic
• Efficient

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• About the Project
• Contracted through USAID
• Coordinated with World Bank and DFID programmes
• Core Team approach
• Expatriate Technical Advisors

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Project Purpose - to assist BPE
• Project Priority
• development of transparent and accountable
  procurement procedures for enterprise
  privatization transactions

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Project Purpose - to assist BPE
• Enterprise Privatisation Transactions
• Labor Relations
• Communications
• Procurement and Management Information Systems

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Core Team Approach Brings
• Essential Sustainable Skills
• Core Team - local or dual-nationals seconded to
  BPE from industry with
• Organizational Strength
• Procedural Experience
• Legal Expertise

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Core Team Approach Provides
• In-House Capabilities to
• Manage increased level of privatization
  transactions
• Ensure procedures are strictly followed
• Expand skills of existing and new staff
• Support policy decisions of NCP
• Ensure Transparency of Process

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Key Ingredients to Core Team Success
• High-level Executive Branch Political Will
• Dynamic BPE Management Direction
• Donor Agency Support and Encouragement
• Professional Technical Assistance/Guidance
• Skilled and Motivated Core Team Members
• Receptive and Participative Bureau Workforce

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Services Provided to Assist BPE
• Document current policies, procedures, and
  processes and identify additional requirements
• Review and assess policies, procedures, and
  processes for compliance with Government and
  World Bank guidelines
• Assist development of plan to strengthen
  procedures and processes, especially IT/MIS
  systems applications
• Supervise development of procedures and processes
  documentation

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• BPE IT/MIS Procedure and Process Strengthening
• Identify optimal level of computerization to
  achieve desired functionality and integrity
• Identify and quantify need for customization to
  support core and non-core BPE requirements
• Assist development of specific MIS applications

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• BPE Procedures and Processes Set Government
  Target for Professionalism
• Achieve greater functionality and integrity in
  procurement processes
• Help local consulting companies and enterprises
  meet fair bidding criteria
• Reduce insider transactions
• Increase number of bidders on assets

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• BPE Previous Structure

Director General
Operations
Planning Monitoring
Council Affairs
Finance Administration
Legal Services
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Bureau of Public EnterprisesFederal Republic of
Nigeria

• BPE Previous Structure

Director General
Office of Director General Core Services
Infrastructure Networks
Natural Resources
Oil Gas
Industry Manufacturing
Services Sector
Transport Aviation
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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Office of Director General Core Services
• Internal Support Functions
• External Relations Functions
• Monitoring and Compliance
• Oversight

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Internal Support Functions
• Central Administration
• Information Technology Systems
• Finance Accounts
• Human Resources
• General Counsel and Council Secretariat

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• External Relations Functions
• Media Relations
• Issues Management
• Communications
• Marketing

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Monitoring and Compliance
• Program Planning
• Program Monitoring
• Research

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Oversight
• Internal Audit Due Process
• Anti-Corruption

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• IBTCI Project Achievements
• World-class sustainable procurement system
  incorporating World Bank Guidelines
• Holistic programmatic and project approach to
  successful privatisation program
• 460 m. in privatisation revenues over 2 ½ years
• Increased capacity and ability of domestic
  investors in national economic assets

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Privatisations Accomplished
• NAL Merchant Bank, Plc
• International Merchant Bank, Plc (IMB)
• UNIPETROL, Plc
• First Securities Bank International Bank, Plc
  (FSB)
• ASHAKACEM, Plc.
• WEST AFRICAN PORTLAND CEMENT, Plc (WAPCO)
• CEMENT COMPANY OF NORTHERN NIGERIA, Plc (CCNN)
• African Petroleum, Plc (AP)
• National Oil And Chemical Marketing Plc
• Benue Cement Company Plc (BCC)
• Nigercem Plc
• Assurance Bank of Nigeria (ABN)
• Afribank PLC

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Privatization Support Project Example of going
  forward
• IDA Credit-supported
• 1) National public awareness program
• 2) Lagos State Water Corporation
• 3) Future additional activities

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Bureau of Public EnterprisesFederal Republic of
Nigeria

• National Public Awareness Campaign Objectives
• Generate awareness and support for privatization
  program
• Improve privatization program transparency and
  increase public trust by providing extensive
  information
• Attract potential domestic and foreign investors
• Strengthen sustainable regional communication
  team
• Shape public attitudes about privatization
  through accountability

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Bureau of Public EnterprisesFederal Republic of
Nigeria
NATIONAL COORDINATING COMMUNICATION CONSULTANT,
ZONAL COMMUNICATION CONSULTANTS AND
ZCC-APPOINTED STATE REPRESENTATIVES
Corporate and Financial National Coordinating
Communication Consultant
Bureau of Public Enterprises Public Affairs Unit
ZCC South West 6 State Representatives
ZCC North West 7 State Representatives
ZCC South East 5 State Representatives
ZCC North East 6 State Representatives
Quarterly Zonal Workshops
ZCC South-South 7 State Representatives
ZCC North Central 6 State Representatives
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Bureau of Public EnterprisesFederal Republic of
Nigeria

• Lagos State Water Corporation Privatization
• Assist BPE and NPC by
• Review of preparation work to date
• Formulation of ownership structure and scope of
  LSWC concession, activities, responsibilities
• Conducting re-marketing and financial analysis
• Structuring transaction and prepare contract
• Managing bidding and transaction close-out