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FG, states agree on five power plants sale

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By Abdulwasiu Usman

47 percent of the proceeds is for FG, the 53 percent balance goes to states.

The Director-General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh, has revealed to the media that the federal government has eventually reached a successful mutual agreement to proceed with the sale of five power plants built under the National Integrated Power Project (NIPP). This comes following an initial opposition to the sale by the state’s governor. He noted that the mutual agreement on the critical need to realize value from these assets before they depreciate beyond value had stalled the sale for about two years.

According to him, the transactions could reach a financial bid opening before the end of the year, with the proceeds to come in the first quarter of 2023 and shared between the federal and state governments. The assets have been categorized as federation assets given that they were built with federation revenue, ordinarily shared between the three tiers of government. As such, he said that the federal government would receive the statutory 47 percent of the privatization proceeds, while the balance of 53 percent would be distributed among the states.

Upcoming Year would exceed the projected N260 billion.

The 2023 Fiscal plan is expected to contribute a sum worth 260 billion Naira as privatization proceeds. However, with the imminent sale of the five power plants, Okoh expressed optimism that contributions of the privatization proceed to the federal government budget in the 2023 Fiscal Year would exceed the projected N260 billion. When asked about the concession of Ajaokuta Steel Complex, Okoh clarified that the organization was not involved. He explained that the process was overseen by the Federal Ministry of Mines and Steel Development, noting that BPE was only involved in the resolution of the ownership issues.

Moreover, the Director-General claims that it can only be said that BPE was involved in the resolution of the Warri Port concessions that went south due to the fact that one of the assets that were committed under the Global Concession had been concessions by the BPE. For this reason, the organization got involved in negotiations with Global Infrastructure to take them out of Ajaokuta. In his statement, Okoh made it known that BPE, in collaboration with the Ministry of Health, had embarked on a comprehensive health sector reform that would serve as a legacy achievement of the President Muhammadu Buhari administration.

Round funding is a major problem bedeviling the administrative framework.

Mr. Okoh said that the Health Sector Reform initiated in 2019 has seen some progress, having engaged a consultant to do a diagnostic review on the health sector to ensure the availability of health care for out-of-pocket expenses. He asserted that it is noticeable that at least 80 percent of the population is not covered by any form of health insurance, which means that in the case of any occurrence that necessitates health care delivery, the payment will be their burden.

In response to this, the government has taken charge of providing quality health care to the citizens with the dimensioned multiple levels of the health sector, from primary to tertiary. Also, round funding has been identified as a major problem bedeviling the administrative framework. In addition to the government endeavor, Health Reform Committee had been set up, a platform spearheaded by the Vice President as the committee pivoted the health sector with transformational themes. Not long ago, the committee came up with a new theme said to be Great Paper, a Concept Note: essentially the concept of how to restructure the healthcare delivery system in Nigeria.

The aim is to reposition the healthcare delivery framework.

Among other concerning issues, the government is looking at how to shift administrative and decision-making powers to the institutions, especially at the Medical Centers and the Teaching Hospitals, where healthcare is delivered. Generally, the administration aims to reposition the healthcare delivery framework for Nigerians along the line of what you have in the National Health Interview (NHIS) in the UK, where the public can consume healthcare delivery through various means like insurance. Ultimately, Okoh gives a rest assuring the public that the new model would adequately address the challenges currently bedeviling the health sector in Nigeria, emphasizing that all hands are on deck to ensure the initiative is implemented without a hitch.


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Admin
9 months ago

FG, states agree on five power plants sale – 47 percent of the proceeds is for FG, the 53 percent balance goes to states. – Express your point of view.

Adeolastan
Adeolastan
Member
9 months ago

One of the constitution right of the government to her citizens is providing quantitative,qualitative and very affordable healthcare system and the only way this can be archive is through NHIS.This will go a long way is helping the citizens.

jdpumping
jdpumping
Member
9 months ago

It’s good news that the government has reached compromise for the plants to be sold and how the money would be shared and judiciously use for the benefits of the citizenry be it health and other sectors.

Abusi
Abusi
Member
9 months ago

I don’t like the idea that we are selling our power plants. Can’t we ensure this power plants work to maximum effect?
We can invest our funds on it and ensure they are working well. We shouldn’t be selling our possessions.

Tolaniiii
Tolaniiii
Member
9 months ago

At least 80% of the population does not have health insurance, thus if they need health treatment, they will pay for it.

Tolaniiii
Tolaniiii
Member
9 months ago

BPE was involved in the Warri Port concessions that went south because one of the Global Concession assets was BPE concessions.

Christiana
Christiana
Member
9 months ago

The mandatory portion of 47% of the earnings from the privatization would be sent to the federal government, and the remaining 53% would be split amongst the states.

Bola12
Bola12
Member
9 months ago

The government is in charge of making sure people get good health care. It has set up different levels of health care, from primary to tertiary.

Tonerol10
Tonerol10
Member
9 months ago

FG, states agree on five power plants sale. Whatever that will benefit the state is a welcome development. We really need to get it right in this country. Government need to do the needful

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
9 months ago

Five power plants constructed as part of the National Integrated Power Project have been successfully negotiated for sale by the federal government.

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
9 months ago

The sale had been put on hold because both parties had come to the conclusion that it was critically important to extract value from these assets before they lost all worth.

Hassan Isa
Hassan Isa
Member
9 months ago

Federal and state governments are expected to split the proceeds from the transactions in the first quarter of the year, thus a financial bid opening for the deals might happen as early as this year.

Adesanyaj72
Adesanyaj72
Member
9 months ago

the Federal Ministry of Mines and Steel Development oversaw the operation, and BPE played no role in the process other from settling the ownership disputes.

Kazeem1
Kazeem1
Member
9 months ago

The Federal Ministry of Mines and Steel Development. It should be noted that BPE was only involved in this aspect of the process.

Chibuzor
Chibuzor
Member
9 months ago

A short while ago, the committee came up with a new topic and the healthcare delivery system in Nigeria. Concept Note is an abbreviation for Great Paper.

Taiwoo
Taiwoo
Member
9 months ago

All hands are on deck to guarantee the project is carried out without a hitch, and the new model would effectively address the difficulties currently bedevilling the health sector in Nigeria.

theApr
theApr
Member
9 months ago

In addition to other troubling issues, the government is considering how to give institutions—particularly Medical Centers and Teaching Hospitals—where healthcare is provided with administrative and decision-making authority.

Haykaylyon26
Haykaylyon26
Member
9 months ago

Selling of this power plant is not really okay to me why can’t we make use of it and fund it well to standard our supply of power why selling it? I hope selling it will benefit the country and the sharing rate is quiet good also

Iyanu12345ogg
Iyanu12345ogg
Member
9 months ago

Great! the government has reached,a compromise for the plants to be sold and how the money would be shared and judiciously use for the benefits of the citizenry be it health and other sectors.

Last edited 9 months ago by Iyanu12345ogg
Ultra0711
Ultra0711
Member
9 months ago

The government’s compromise on the sale of the plants and the distribution and wise use of the resulting funds will undoubtedly have positive effects on citizens’ health and other areas of life.

Remi1
Remi1
Member
9 months ago

In addition to other troubling issues, the government is considering how to give institutions—particularly Medical Centers and Teaching Hospitals—where healthcare is provided with administrative and decision-making authority.

SarahDiv
SarahDiv
Member
9 months ago

When government infrastructures are sold, such money gotten from the concession of the company should channeled appropriately for sole purpose of benefiting the masses .

DimOla
DimOla
Member
9 months ago

After the concession of the said power plant how does it benefits the masses. So many government facilities and companies have be concessed with no positive result over the years.