Related Posts
The Bureau of Public Enterprises (BPE) may throw more redundant public assets for sale next year to meet its 2020 fiscal budget funding pegged at about N447 billion, its Director-General, Mr. Alex Okoh, has hinted.
Redundant assets are national monuments located in various corners of the country that have been abandoned over the years.
In 2019 budget, the bureau had budgetary funding target of N220 billion. It has so far realised N135 billion, leaving balance of N85 billion deficit.
Okoh, who confirmed the plan to New Telegraph in Abuja at a sideline of farewell programme in honour of a retired Director, Mr. Chigbo Anichebe, cited economy losses the nation incurs by keeping redundant, unproductive assets.
“We can’t continue to keep federal redundant assets to an extent they are beginning to turn into liabilities when we can convert them to values, to cash, and use the proceeds to fund a national budget rather than resort to borrowing to fund expenditure when we have these assets lying over there. And these assets are even making serious demands on government’s purse by way of subvention. It doesn’t make sense.
“For me, that’s throwing good money after bad assets. We should convert those assets to value, privatize those that can be privatised; concession those that can be concessioned and use the proceeds to fund other social imperatives of our fiscal plan,” he said.
On the amount BPE will be contributing to fund 2020 budget, Okoh said the amount is a bit higher to 2019 budget funding target.
“So far, we’ve done N135 billion in 2019. For 2020, we’re looking at about N447 billion. And that is where the idea of converting redundant assets to cash for funding fiscal budget comes in.
“If you look at the National Theatre, for example, that is an asset that is just lying there redundant; degenerating on a daily basis. For those kinds of assets, rather than regard them as monuments, we should be able to convert them to value. If you go abroad and visit New York, for example, you can see what they have done out of the 911 memorial. It’s not just a memorial for people to visit, it generates money for the City of New York. So, this idea of looking at national assets as just monuments rather than assets and liabilities, we need to change our mentality. “Government doesn’t have the money to keep subsidizing and providing for the maintenance of the assets, including the National Stadium,” he said.
On his part, Anichebe urged the National Assembly to expedite action on eight Bills, some of which had been pending since 2004.
He said the focus of majority of the Bills has to do with reforms of the sectors. He said reforming the sectors is key to opening them for private sector participation for efficiency. (New Telegraph)
Redundant assets are national monuments located in various corners of the country that have been abandoned over the years.
In 2019 budget, the bureau had budgetary funding target of N220 billion. It has so far realised N135 billion, leaving balance of N85 billion deficit.
Okoh, who confirmed the plan to New Telegraph in Abuja at a sideline of farewell programme in honour of a retired Director, Mr. Chigbo Anichebe, cited economy losses the nation incurs by keeping redundant, unproductive assets.
“We can’t continue to keep federal redundant assets to an extent they are beginning to turn into liabilities when we can convert them to values, to cash, and use the proceeds to fund a national budget rather than resort to borrowing to fund expenditure when we have these assets lying over there. And these assets are even making serious demands on government’s purse by way of subvention. It doesn’t make sense.
“For me, that’s throwing good money after bad assets. We should convert those assets to value, privatize those that can be privatised; concession those that can be concessioned and use the proceeds to fund other social imperatives of our fiscal plan,” he said.
On the amount BPE will be contributing to fund 2020 budget, Okoh said the amount is a bit higher to 2019 budget funding target.
“So far, we’ve done N135 billion in 2019. For 2020, we’re looking at about N447 billion. And that is where the idea of converting redundant assets to cash for funding fiscal budget comes in.
“If you look at the National Theatre, for example, that is an asset that is just lying there redundant; degenerating on a daily basis. For those kinds of assets, rather than regard them as monuments, we should be able to convert them to value. If you go abroad and visit New York, for example, you can see what they have done out of the 911 memorial. It’s not just a memorial for people to visit, it generates money for the City of New York. So, this idea of looking at national assets as just monuments rather than assets and liabilities, we need to change our mentality. “Government doesn’t have the money to keep subsidizing and providing for the maintenance of the assets, including the National Stadium,” he said.
On his part, Anichebe urged the National Assembly to expedite action on eight Bills, some of which had been pending since 2004.
He said the focus of majority of the Bills has to do with reforms of the sectors. He said reforming the sectors is key to opening them for private sector participation for efficiency. (New Telegraph)
