The Federal Government of Nigeria is looking to sell 20% of its shares in some partially privatized companies listed on the Nigerian Stock Exchange (NSE), according to Alex Okoh (photo), the Director General of the Bureau of Public Enterprises (BPE). This aims to allow Nigerians own shares in the firms.

Speaking at the 2017 annual national workshop of the Chartered Institute of Stockbrokers (CIS) in Abuja, Okoh said the BPE was carrying out a quick assessment of privatized enterprises, particularly those in the petrochemical sector, with the aim of divesting government’s shares on the capital market.

“The BPE is working with core investors in certain privatized enterprises sold by deferred public offering to ensure that they sell at least 20% of such entities to the market via public listing.”

The Director General explained that privatized companies across Nigeria would have to list on the NSE as part of the reform and privatization programme of the government. The reason behind the listing was born out of need to give the public a sense of inclusion in the ownership of national assets.

“As you know, several Nigerians have argued in the past that the enterprises privatized by BPE were cornered by a few individuals, but as part of the reform and privatization strategy many of them were supposed to be listed on the stock exchange in the long-run. So listing them on the stock exchange will engender a sense of ownership in the assets by more Nigerians,” Okoh added.

Anita Fatunji