By Michael C. N. Ikedianya
The dilemma over Federal Government’s privatisation and commercialisation exercise bordering on the questionable sale and concessioning of public enterprises and assets is unfortunate. The hue and cry over the exercise involving enterprises like the Nigerian Telecommunications Company, Nigerian Ports Authority, National Arts Theatre, airports, steel mills and refineries at give-away prices can largely be traced to the simple fact that the sale, concessioning and transfer of the enterprises were in the main neither based on, nor backed by any credible and appropriate technical valuation.
For any nation’s privatisation exercise to be deemed credible and honest, it must, in its entirety, be based on and backed by appropriate and optimal technical valuation methodologies, modalities, systems and approaches. Any national privatisation exercise not meaningfully based on nor backed by these necessities should be regarded as dubious and questionable.
As far as the current exercise is concerned, we are already heading towards the rocks - unless requisite remedial measures are urgently and meaningfully put in place. In particular, the Privatisation and Commercialisation Act of 1999 should urgently be amended to give the National Assembly requisite power to oversee, review, approve, vet and monitor all major issues relating to privatisation, sale, concessioning and transfer in any way of public enterprises to private hands. All major decisions and transactions on public assets shortlisted for privatisation should be approved by the National Assembly before they are implemented. This would be in the same direction as the National Assembly’s prerogative of scrutinising, vetting and approving of the annual federal budget before it is signed into law by the President.
Empowering the National Assembly to review, scrutinise, vet and approve all major decisions and transactions on public enterprises and public assets shortlisted for privatisation and other corrective and remedial measures will greatly assist in infusing requisite checks and balances, transparency, accountability and credibility into the entire National Privatisation Programme. In particular, it will help in bringing about requisite national and international confidence, credible and acceptance for the privatisation exercise which is very pivotal for the success of any national privatisation exercise.
In view of the fact that proper valuation of the public enterprises and public assets being privatised is strategic and pivotal for the success of any privatisation programme, the National Council on Privatisation and the Bureau Enterprises, the two Federal Government agencies charged with the implementation of the current National Privatisation Programme in the country, greatly need to take appropriate steps towards the articulation, systematisation and structuring of appropriate and optimal technical valuation methodologies, modalities, system and approaches for the proper, effective and meaningful valuation of the various enterprises and public assets billed for privatisation.
The first step towards the articulation, systematisation and structuring of appropriate and optimal technical valuation methodologies, modalities, systems and approaches would be established a virile Technical Valuation Sub-Committee as well as a Virile Valuation and Pricing Monitoring Unit. The 1999 Privatisation and Commercialisation Act should be appropriately amended to duly provide for this. Both the Technical Valuation Sub-Committee and the Valuation and Pricing Monitoring Unit should be made up of top-flight appraisal and valuation professionals from the fields of valuation economics, estate surveying and valuation, engineering, accounting, finance and investment, project evaluation, engineering, accounting, finance and investment, project evaluation and appraisal, etc.
The Technical Valuation Sub-Committee will be in charge of articulating, planning, coordinating, supervising and monitoring the valuation of the various public enterprises and public assets billed for privatisation, including monitoring the performance and works of valuation consultants. The valuation and Pricing Monitoring Unit will be in charge of monitoring the valuation, pricing and sale of the various public enterprises and public assets. The Valuation and Pricing Monitoring Unit will be reporting directly to the National Council on Privatisation and, also to the National Assembly periodically or as occasion demands. This arrangement will greatly infuse requisite checks and balances very essential and pivotal for optimal performance, accountability and transparency into the current National privatisation exercise. Furthermore, it will go a long way in bringing about requisite national and international confidence, credibility and acceptance for the privatisation exercise
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