The Bureau of Public Enterprises (BPE) has explained that the privatization processes for the Bank of Industry (BoI), Bank of Agriculture (BoA) and Abuja Securities and Exchange Commission otherwise known as Abuja Commodities Exchange (NCX) are still at preliminary stages.
In a statement in Abuja signed by its Spokesperson, Chigbo Anichebe, BPE stated that approvals granted by the National Council on Privatisation (NCP) at its last meeting of April 16, 2015 were for the opening of financial bids for the procurement of transaction advisers that will conduct the diagnostic review of the development finance institutions (DFIs) and recommend the privatization transaction structure. The opening of the financial bids is not for the core investor sale of those institutions as has been misconstrued.
“The engagement of transaction advisers is just the initial stage of a process that is expected to last for over a year. The transaction adviser will collate technical and financial information that will be incorporated in the information memorandum that will be made available to potential investors to guide their decision.
“Those familiar with the Bureau’s transaction processes are aware that before the commencement of any transaction, the Bureau engages transaction advisers to advise it on the transaction strategy and for NCP approval. Adverts will then be placed to invite prospective investors to express interest.”
The statement further stated that prior to the approval for the opening of financial bids submitted by prequalified transaction advisers the Bureau commenced the process in 2014 by advertising for expressions of interest from prospective advisers on June 23, 2014. “The NCP considered the recommendations made by its Technical Committee on the evaluation of the expressions of interest and approved the report of the evaluation of expressions of interest (EOIs) for the engagement of transaction advisers.
“The NCP then directed that the Requests for Proposal (RFP) be sent to the six consortia of transaction advisers that were shortlisted at the EOI stage on December 19, 2014. After submission of Request for Proposals (RFPs) and their evaluation, NCP approved that those that met the criteria should proceed to the financial bid stage.
“This clarification becomes necessary to underscore the fact that the actual process for the partial privatization of the development finance institutions has not commenced. It will commence when adverts are placed to invite bidders to express interest.
“It would be recalled that the National Council on Privatization (NCP) which is the statutory body charged with driving the reform and privatization program of the Federal Government during its meeting of April 2015 held in the Presidential Villa, Abuja, on Thursday, April 16, 2015, approved the Financial Bid Opening for Pre-qualified Advisers for the partial privatization of three Development Financial Institutions (DFIs) in the country- Bank of Agriculture (BOA), Bank of Industry (BOI) and Nigeria Commodity Exchange (NCX), formerly Abuja Securities & Commodity Exchange Commission (ASCE).”