Government mulls palliatives for non-performing privatised firms

The Bureau of Public Enterprises (BPE) has announced plans to assist non-performing state-owned privatised firms.

BPE Director General, Mr. Alex Okoh, made this disclosure yesterday at a stakeholders and investors forum in Abuja.

He listed some of the palliatives to include waivers and the adjustment of other fiscal and monetary policies that are capable of fast-tracking their performance.

According to him, 37 per cent of the 142 firms privatised since 1980, are believed to be in a state of inactivity.

He said assisting them to restart operations would create employment opportunities and tax revenues for the country.

Okoh explained that the BPE would also support them with macroeconomic policies that would stabilise the foreign exchange market and make them to access forex.

Also included are policies that would drive the interest rates down to single digit level, and make access to credit facility much easier.

He added that the entities would include fiscal policy incentives in terms of waivers and tariff protection, as well as revamping of some infrastructural facilities to reduce the cost of doing business and improve productivity.

The project, which would be in phases and sectors, would commence with bricks, mining, steel and automobile industry services and agriculture.

Okoh explained that the philosophy behind the palliatives was that the desire of the Federal Government in the privatisation and commercialisation exercise had not been achieved.

He stressed that some of the firms have remained comatose since they were handed over, while a few have not been performing up to their installed capacities.

The National Council on Privatisation (NCP) in its wisdom therefore directed its secretariat and the BPE to review the activities of the enterprises and present its findings with appropriate recommendations.