BPE to support 2020 budget with N266.8bn

The Bureau of Public Enterprises (BPE) yesterday said it intends to raise N266.8 billion as net revenue from the sale and commercialisation of federal government enterprises to support the funding of the 2020 budget.

The Director General (DG) of BPE, Dr. Alex Okoh, disclosed this in Abuja while unveiling the bureau’s 2020 work plan, revenue and expenditure projections.

Dr. Okon said the total gross revenue expected from the assets sales was N270.7bn out of which N3.9bn would be incurred as cost to deliver the mandate, leaving a net revenue of N268.8bn that would be transferred to the consolidated revenue fund.

Daily Trust reports that about N2tn of the N10.59tn 2020 budget is planned to be funded through borrowing.

The BPE DG said the N266.8bn that was projected to be raised would be used to support the funding of the deficit in the 2020 national budget.

He further said BPE was looking outside traditional revenue sources to more creative Internally Generated Revenue (IGR) sources, including how it could convert redundant government assets into some form of liquidity to fund the budget.

“It is not only to privatise or sell these assets in order to raise revenue from the proceeds, but we are also looking at reducing the subvention and the budgetary allocation that otherwise would have been provided for these enterprises,” he said.

According to him, about 20 transactions were planned for 2020 from which the N268.8bn would be raised.

Giving a breakdown of the numbers, Okoh said a total of nine transactions were expected to take place in the power, mining and steel sectors which would generate about N268.3bn. The energy assets to be privatised include the Yola DisCo (N105bn), Afam Power Limited and Afam Three Fast Power (N19bn) which were carried from the 2019 work plan.

Other assets to be sold are the Nigeria Integrated Power Project (NIPP), Dowell Schlumberger Nigeria Ltd and sale of additional shares of Geregu to Amperion Power.

Also included are the partial privatisation of Calabar and Kano Free Trade zones, Bank of Agriculture (BOA), Lagos International Trade Fare Complex, Tafawa Balewa Square, among numerous others.

He said the new transactions expected to be carried out in 2020 included A.C.M of Nigeria Limited, non-operational power plants, the Nigerian Film Corporation (NFC) and development of infrastructural facilities at the tertiary educational institutions.

The post BPE to support 2020 budget with N266.8bn appeared first on Daily Trust.

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