Three privatised entities removed from BPE monitoring

The Federal Government has certified three privatised firms free from routine monitoring activities of the Bureau of Public Enterprises (BPE).

The companies are Federal Superphosphate Fertilizer Company (FSFC), Kaduna; Cement Company of Northern Nigeria (CCNN), Sokoto and Ikoyi Hotel (now Southern Sun), Lagos.

The National Council on Privatisation (NCP) at its maiden meeting for 2022 approved the delisting of the companies from monitoring as requested by BPE.

BPE, in the request, had noted that the companies had fulfilled their covenants as identified in the key performance indicators (KPIs) contained in the Share Sale and Purchase Agreements (SSAPs) signed with the BPE.

According to a statement by Head, Public Communications of BPE, Ibeh Chidi, yesterday, the Bureau noted that it had carried out a review of the enterprises in line with BPE’s mandate to manage post-privatisation issues of privatised public companies and was satisfied that the core investors had ensured compliance with the covenants.

BPE stated that it had developed standard processes and procedures for delisting privatised enterprises, which all privatised enterprises are bound to comply with before delisting.

BPE said it reviewed all the data submitted by the core investors in line with their KPIs as indicated in the SSPA and followed up with an on-the-spot assessment of the companies to validate the data submitted, which showed excellent performance.

FSFC was incorporated in September 1973 with an installed capacity of 100,000 metric tons per annum and privatied in 2005. It was handed over to the core investor, Messrs HEIKO Consortium in January 2006.

Ikoyi Hotel also called Nigerian Hotels Limited was established in 1932 and 100 per cent by the Federal Government. The hotel was privatised through an asset sale programme and handed over to BETA Consortium Limited in 2003.

CCNN was commissioned in 1967 with the Federal Government owning 45 per cent shares in the company. In 2000, the FG divested through a strategic core investor sale/initial public offer (IPO).