Bureau of Public Enterprise: Functions, impact, history, and more

What is the Bureau of Public Enterprises (BPE)?

The Bureau of Public Enterprises (BPE) is a Nigerian government agency responsible for the privatization and commercialization of state-owned enterprises. Established in 1999, the BPE has undergone several reforms and has played a significant role in the country’s economic development. 

This article provides an overview of the BPE’s powers, history, functions, and purpose, highlighting its impact on Nigeria’s privatization program.

History of the Bureau Of Public Enterprises 

The Bureau of Public Enterprises (BPE) was established in Nigeria in 1999 to privatize and commercialize state-owned enterprises. The BPE is an agency under the Federal Ministry of Finance that operates as a technical unit responsible for driving the privatization and commercialization program of the federal government.

The BPE has undergone several reforms since its inception to enhance its efficiency and effectiveness in delivering on its mandate. One of the significant reforms was the enactment of the Public Enterprises (Privatization and Commercialization) Act of 1999, which empowers the agency to oversee the privatization and commercialization of public enterprises.

Over the years, the BPE has played a vital role in Nigeria’s economic development. It has privatized over 140 public enterprises, including banks, insurance companies, telecommunications, and energy companies, among others. The privatization program has attracted foreign direct investment, create employment opportunities, and enhanced the operational efficiency of the privatized enterprises.

The BPE has also facilitated the restructuring and commercialization of public enterprises, including the Nigerian Telecommunications Limited (NITEL), the Power Holding Company of Nigeria (PHCN), and the Nigerian Railway Corporation (NRC). These reforms have improved the performance of the enterprises, increased their revenue, and made them more attractive to potential investors.

Functions and powers of the Bureau Of Public Enterprises 

The Bureau of Public Enterprises (BPE) is responsible for overseeing the privatization and commercialization of public enterprises in Nigeria. To achieve this mandate, the agency has been empowered with certain powers and responsibilities.

The BPE’s powers include the ability to initiate, plan, and execute the privatization and commercialization of public enterprises. The agency has the power to hire consultants, advisers, and other experts to facilitate the process. Additionally, the BPE is authorized to develop policies and guidelines for the privatization program and enforce compliance with them.

The agency is also responsible for the valuation of public enterprises to be privatized, ensuring that the privatization process is transparent and competitive, and safeguarding the interests of the government and the public.

Moreover, the BPE is authorized to sell public enterprises, both partially and wholly, to investors through public offers, competitive bidding, and other methods. The agency also has the power to revoke the sale of any public enterprise if the investor fails to comply with the terms and conditions of the sale.

In addition to its core mandate, the BPE also carries out other functions, such as facilitating the restructuring and commercialization of public enterprises, providing technical assistance to the government on privatization, and conducting research on the privatization program.

Privatization and commercialization program in Nigeria 

The privatization and commercialization program in Nigeria, which is overseen by the Bureau of Public Enterprises (BPE), was initiated in 1988. The program aimed to reduce the government’s involvement in economic activities, promote private sector participation in the economy, and increase the operational efficiency of public enterprises.

The program involves the sale of public enterprises, both partially and wholly, to private investors through various methods, including public offers, competitive bidding, and negotiated sales. The BPE is responsible for implementing the program and ensuring that the privatization process is transparent, competitive, and efficient.

Since the program’s inception, over 140 public enterprises have been privatized or commercialized, including banks, insurance companies, telecommunications, energy companies, and other sectors. The program has attracted significant foreign investment, increased the operational efficiency of privatized enterprises, and created employment opportunities.

However, the program has faced several challenges, including corruption, legal battles, and opposition from labour unions and interest groups. These challenges have slowed down the privatization process, and some privatized enterprises have failed to perform optimally, leading to calls for a review of the program.

Impact of the Bureau of Public Enterprises on Nigeria’s Economy 

The Bureau of Public Enterprises (BPE) has played a significant role in the economic development of Nigeria through its privatization and commercialization program. The program has led to an increase in foreign investment, create employment opportunities, and enhanced the operational efficiency of privatized enterprises.

The privatization program has attracted significant foreign investment in various sectors of the economy. For example, the privatization of the telecommunications sector led to the entry of foreign investors and the expansion of the sector, leading to an increase in mobile phone penetration in the country.

Also, the privatization of the energy sector has led to the establishment of new power plants and an increase in the electricity supply. This has had a significant impact on the country’s economy, as inadequate power supply has been a major constraint to economic growth.

The privatization program has also created employment opportunities, especially in the private sector, where new enterprises have been established, leading to job creation. The operational efficiency of privatized enterprises has also improved, leading to an increase in revenue, profitability, and competitiveness.

Challenges and future of the Bureau Of Public Enterprises 

While the privatization and commercialization program in Nigeria has had several successes, it has also faced several challenges. These challenges have slowed down the program’s progress and have been a source of concern for the Bureau of Public Enterprises (BPE).

One of the major challenges of the program is corruption, which has led to the sale of public enterprises at below-market prices, and the diversion of proceeds from the sale. The BPE has taken steps to address this challenge by enforcing transparency and accountability in the privatization process and working with anti-corruption agencies to prosecute those found guilty of corruption.

Another challenge is the opposition from labour unions and interest groups, who are concerned about the loss of jobs and the impact of privatization on their welfare. The BPE has worked with these groups to address their concerns and ensure that the privatization process is carried out in a manner that protects the interests of workers.

Additionally, some privatized enterprises have failed to perform optimally, leading to calls for a review of the program. The BPE has initiated a review of the program to identify areas that need improvement and make necessary adjustments.

Looking to the future, the BPE has identified several sectors for privatization, including the railway, airports, and seaports. The agency plans to leverage the successes of the privatization program to attract foreign investment and enhance the operational efficiency of these sectors.

Conclusion 

In conclusion, the Bureau of Public Enterprises (BPE) has been instrumental in the privatization and commercialization program in Nigeria. Through the program, the country has attracted significant foreign investment, create employment opportunities, and enhanced the operational efficiency of privatized enterprises, contributing to the country’s economic growth and development.

Where is the BPE head office?

The head office of the BPE is located at Abuja.