FG’s Privatisation Policy Has Achieved It’s Obejective – Nat’l Planning Minister
The Minister of National Planning Commission, Dr. Shamsuddeen Usman has said that privatization as an economic policy of the Federal Government has substantially achieved its objective and government will ensure its continuation.
He made this known in Gboko, Benue State when the Policy and Monitoring Committee of the National Council on Privatization (NCP) visited Benue Cement Company (BCC) Plc in continuation of its Post Privatization Monitoring tour of privatized enterprises across the country.
Dr. Usman said the facts are visible for everyone to see that most privatized enterprises were successful.
The Minister informed the company that the purpose of the monitoring tour of privatized enterprises by the Committee was to ascertain how government policies were affecting the performances of privatized enterprises in respect of the implementation of their Post Acquisition Plans (PAP).
Responding on behalf of the management of the company, the Group Managing Director, Cement, for Dangote Group, Dr. Joseph Makunjo told the Committee that from the time of take over as core investors in 2004, the plant was upgraded from the initial installed capacity of 0.9 million metric tons per annum (MTPA) to 3 million MTPA with an ongoing plan to further expand to 4 million MTPA.
Makoju further enumerated some of the challenges facing the company as low quality/insufficient power supply from public power source (PHCN), inadequate government infrastructure like good roads, high cost of LPFO and diesel, the source of power for its operation.
You may recall that Benue Cement Company Plc. was one of the enterprises privatized in the first phase of the privatization program. The Federal Government had 35 percent equity in the company prior to privatization.
It may also be recalled that the Technical Committee of the NCP met on 19th April 2000 for the opening of bids submitted by prospective core investors of: Blue Circle Industries Plc, Dangote Industries Limited (DIL) and Cementia Holding AG.
At the end of the bidding process, Dangote Industries Limited emerged the core investor to acquire 173,267,194 shares at N5.30 per share, totaling N918,316,128.20.
However, due to community agitation, the company was not handed over to the winning investor until January 2004 and the DIL commenced operations in 2005.
The Post Privatization Monitoring by the Policy and Monitoring Committee of the NCP continues with a visit to Lagos ports on Friday, July 5, 2013.
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