The Speaker of the House, Femi Gbajabiamila, and members of the House Committee on Privatization and Commercialization, as well as the President Nigeria Labour Congress NLC, Mr Ayuba Wabba and other key stakeholders have blamed the failure of privatization and commercialization of public enterprises by government on infrastructural deficiency in Nigeria.

They hinted this during separate presentations at the hearing organized by the Hon. Ibrahim Makama Misau-led Committee on Privatization and Commercialization.

The hearing was on a proposed legislation titled: ‘A Bill for an Act to Repeal the Public Enterprises Privatization and Commercialization 1999 Act, Cap P38 LFN 2004 and Enact the Public Assets Reform Bill 2021 For Improved Efficiency and Management of Public Assets in Nigeria and For Related Matters’

Gbajabiamila,who declared the hearing open,said the  change Nigeria needs  in public enterprises calls for a legal framework that would maximize the value of existing assets.

Represented by the House Leader Hon. Alhassan Ado Doguwa, the speaker said that stakeholders at the public hearing are capable of bringing out positive outcome in the public sector with respect to public assets.

In  his remark, Chairman of the House Committee Hon. Ibrahim Misau said with a repeal of the Privatization and Commercialization Act 1999 that public deficit amounting to $1.3 million will be bridged with the enactment of a new law — the Public Assets Reform Bill.

He noted that other countries are using public private partnership to deliver infrastructural projects to their citizens, saying that ministries, departments and agencies of government will have the opportunity to bridge the infrastructure gap in the country with speed.

The Minister for Works and Housing, Babatunde Raji Fashola (SAN), lamented that most  government owned enterprises sold to private entities through the privatization policy have either failed to love up to expectations, or disappeared entirely.

In a presentation at the hearing, Fashola said that once there is a private sector driven economy, there is need for strong regulation of private enterprises and activities.

According to him,  key sectors of the economy such as banking, telecommunications and consumer goods production are in dire need of a strong legal and regulatory framework in Nigeria

He added:”I am not against privatization but the role of government in privatization is just policy.I looked at the list of privatized entities and found out that most of them had disappeared. Where are the scanners after sixteen years of privatization,” he said.

Speaking,President of Nigeria Labour Congress,Comrade Ayuba Wabba, disclosed that privatization is against the provision of section 16 of the 1999 constitution as amended, and states that the state must protect the economic interest of the citizenry.

The Director-General  of the Bureau of Public Enterprises, Mr Alex Okoh,said it is not all public assets that need to be privatized,adding adding that assets slated for privatization need to be guided by by legislation.

According to him,a total of 234 public enterprises had been revitalized through privatization and concessioning of these assets.

A new report by the World Bank has  revealed that 18 Nigerians firms and Individuals  have been blacklisted for engaging in corrupt practices, fraud and collusive practices in its 2021 the fiscal year 2021, a new report has revealed.

A list of debarred individuals and firms was presented in a new annual report titled World Bank Group Sanctions System FY21.

The debarments were made by the World Bank Sanctions Board, World Bank Chief Suspension and Debarment Officer and the African Development Bank.

The debarments made by AfDB were recognised by the World Bank, making the affected firms to be barred under the cross-debarment policy.

Based on the World Bank Sanctions Board’s decision, Elie Abou Ghazaleh and Fadi Abou Ghazaleh, alongside their firm, Abou Ghazaleh Contracting Nigeria Limited, were debarred for six months for collusive practices.

A Nigerian firm, Swansea Tools Resources, was debarred for fraudulent practices for two years and 10 months,based on the decision of the World Bank Chief Suspension and Debarment Officer,

Referred to under Sanctions Case No 651, it was disclosed that the firm misrepresented its past experience in its bid for a road maintenance contract.

The report read in part, “The SDO determined that the respondent, a Nigerian firm, engaged in fraudulent practice by misrepresenting its past experience in its bid for a road maintenance contract under state employment and expenditure project in Nigeria.

“The SDO imposed on the respondent a debarment with the conditional release for a minimum period of two years and 10 months. As a mitigating factor, the SDO considered the respondent’s limited cooperation with investigators, noting that the respondent produced documents and agreed to be interviewed but did not accept responsibility for the misconduct.”

Another Nigerian firm, Juckon Construction and Allied Services Nigeria Limited was debarred for corrupt practices for three years. Referred to under Sanctions Case No 649, it was disclosed that the firm made improper payment to a public official.

The report reads: “The SDO determined that the respondent, a Nigerian firm, engaged in corrupt practice by making an improper payment to a public official in connection with the award and/or execution of two waste management and refuse collection contracts under a state employment and expenditure project in Nigeria. The SDO imposed on the respondent a debarment with the conditional release for a minimum period of four years.”

A Nigerian, Ms Okafor Glory, was debarred for fraudulent practices for four years, while the firm involved, Unique Concept Enterprises, was debarred for five years for the same reason.

Another Nigerian firm, Asbeco Nigeria Limited, was debarred for five years for corrupt practices.

The matter which involved Ms Glory and the firm, Unique Concept Enterprises, was presented under Sanctions Case No 691.

It read: “The SDO determined that the respondents, a Nigerian firm and a Nigerian citizen, engaged in fraudulent practices by submitting false documents in connection with two refuse collection and disposal contracts under a state employment and expenditure project in Nigeria. In particular, the SDO found that: (i) the corporate respondent submitted a falsified income tax clearance certificate in its bids for the contracts; and (ii) both respondents submitted a falsified advance payment guarantee in connection with the execution of one of the contracts.

“The SDO imposed on the corporate respondent a debarment with the conditional release for a minimum period of five years. On the individual respondent, the SDO imposed a debarment with the conditional release for a minimum period of four years. As aggravating factors, the SDO considered that (i) the corporate respondent engaged in a repeated pattern of misconduct, and (ii) the individual respondent, the SDO imposed a debarment with the conditional release for a minimum period of four years. As aggravating factors, the SDO considered that (i) the corporate respondent engaged in a repeated pattern of misconduct, and (ii) the individual respondent was the managing director of the corporate respondent.”

The matter which involved Asbeco Nigeria was presented under Sanctions Case No 675.

It read in part, “The SDO determined that the respondent, a Nigerian firm, engaged in corrupt practices in connection with an erosion control contract under an erosion and watershed management project in Nigeria. Specifically, the SDO found that the respondent (i) made a payment of N2m (approximately $12,000) to the project’s engineer to influence his actions in connection with the procurement and/or execution of the contract, and (ii) made a facilitation payment of N50,000 (approximately $160) to the project’s cashier to influence her actions in connection with the execution of the same contract.

“The SDO imposed on the respondent a debarment with the conditional release for a minimum period of five years. In determining this sanction, the SDO considered as aggravating factors the respondent’s (i) engagement in a repeated pattern of corrupt activity and (ii) interference with INT’s investigation, noting in particular that the respondent engaged in acts intended to materially impede the exercise of the Bank’s contractual audit rights.”

Based on the World Bank’s Sanctions Board Decision, A.G. Vision Construction Nigeria Limited was debarred for fraudulent practices and collusive practices for four years and six months.

Not included in the report is a recent debarment of a Nigerian consultant, Mr Salihu Tijani, who is a consultant for the National Social Safety Nets Project, a project designed to ensure cash transfers to poor and vulnerable households in Nigeria.

Tijani was barred for 38 months for engaging in corrupt practices.

Aside from the firms mentioned so far, there are some firms that were debarred by other multilateral organisations under cross-debarment, which makes them debarred by the World Bank.

Sangtech International Services Limited, Sangar & Associates (Nigeria) Limited, Mashad Integrated And Investment Co Limited, and Medniza Global Merchants Limited were debarred by the AfDB for two years under cross-debarment recognised by the World Bank.

ALG Global Concept Nigeria Limited, Abuharaira Labaran Gero, Qualitrends Global Solutions Nigeria Limited, and Maxicare Company Nigeria Limited were debarred by the AfDB for three years under cross-debarment recognised by the World Bank.

The World Bank Group’s President, David Malpass,stated that the bank had granted over $157bn to assist developing countries, as he emphasised the need for integrity and transparency standards in public finance.

He said:“Since the beginning of the global pandemic, the World Bank Group has deployed more than $157bn in critical assistance to developing countries. The crisis has required us to be rapid and innovative in mobilising this historic support.Yet, for these resources to have the needed development impact on the hundreds of millions of people who live in extreme poverty, we must ensure that resources are used efficiently, effectively, and for their intended purposes. And that means remaining vigilant to the scourge of corruption and ensuring that we promote the highest integrity and transparency standards in public finance”, he said.

He  highlighted some of the consequences of corruption, which he said could be devastating.

Malpass said: “The negative impacts of corruption on lives and livelihoods are well known. Corruption diverts scarce development dollars from the people who need them most and corrodes the systems and services that are integral for reducing extreme poverty.

“Entrenched corruption also comes with greater economic costs for countries, as it distorts public expenditures and leads to inefficient allocations of financing away from productive investments toward rent-seeking activities. And corruption increases the costs of doing business and deters foreign investors from entering new markets.

“As the world moves toward recovering from the pandemic’s damaging impacts, these costs can also restrict the private sector, which plays an important role in revitalizing economic growth and development in our client countries.”

President Muhammadu Buhari,has explained that  he gave nod  for the establishment of digital currency better known as eNaira  on the strength of its benefits to the country.

He spoke  in Abuja at the official launch of the eNaira,saying that in recent times, the use of physical cash in conducting business and making payments has been on the decline.

He said this trend has been worsened  by the COVID-19 pandemic and the resurgence of a new digital economy,stressing that  alongside these developments, businesses, households, and other economic agents have sought for new means of making payments in the new circumstances.

He said:”The absence of a swift and effective solution to these requirements, as well as fears that Central Banks’ actions sometimes lead to hyperinflation created the space for non-government entities to establish new forms of “private currencies” that seemed to have gained popularity and acceptance across the world, including here in Nigeria.In response to these developments, an overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments.

”A handful of countries including China, Bahamas, and Cambodia have already issued their own CBDCs.A 2021 survey of Central Banks around the world by the Bank for International Settlements (BIS) found that almost 90 per cent are actively researching the potential for CBDCs, 60 percent were experimenting with the technology and 14 per cent were deploying pilot projects.Needless to add, close monitoring and close supervision will be necessary in the early stages of implementation to study the effect of eNaira on the economy as a whole.

”It is on the basis of this that the Central Bank of Nigeria (CBN) sought and received my approval to explore issuing Nigeria’s own Central Bank Digital Currency, named the eNaira,’’ he said.

According to him,his approval was also underpinned by the fact that the CBN has been a leading innovator ‘‘in the form of money they produce, and in the payment services they deploy for efficient transactions.’’

He disclosed  that the Central Bank of Nigeria has invested heavily in creating a Payment System that is ranked in the top ten in the world and certainly the best in Africa.

”This payment system now provides high‐value and time‐critical payment services to financial institutions, and ultimately serves as the backbone for every electronic payment in Nigeria.

”They have also supported several private‐sector initiatives to improve the existing payments landscape, and in turn, have created some of the world’s leading payment service providers today,’’ he said.