Alex A. Okoh, director-general of the Bureau of Public Enterprises (BPE), has given Lead Capital Consortium a deadline of 60 days to conclude the strategic equity investment by the National Sovereign Investment Authority (NSIA) into the Nigeria Commodity Exchange (NCX).
The deadline was given today (June 21, 2017) at the kick-off meeting of the advisory services for the transaction. He pointed out that the main aim of the meeting was to formally introduce the appointed advisor, Lead Capital Consortium, to the key stakeholders including Federal Ministry of Industry, Trade and Investment (FMI&TI), Federal Ministry of Agriculture and Rural Development(FMA&RD), Federal Ministry of Finance(FMF), NCX and NSIA, and to signal the commencement of the advisory service. Lead Capital Consortium emerged the preferred advisor after a competitive bidding process using the Quality and Cost Based Selection Method (QCBS).
Said Okoh: “This assignment as outlined in the work plan, commences today, June 21, 2017 and to be concluded within a period of 60 calendars days, unfailingly. We therefore solicit for the continued support and cooperation of the stakeholders to ensure that this transaction is delivered within the timeframe envisaged.”
He pointed out that the transaction is unique in the sense that unlike in the traditional privatisation transaction approach where a private sector entity is brought in to acquire government shareholding and take over the management and operation of the public enterprise, “here a Government entity is making strategic investment in NCX. This is to enable NCX have access to investment capital to develop the infrastructure to carry out its business effectively in facilitating trade and developing settlement instruments and platforms in agricultural produce and basic minerals.”
The Steering Committee of the National Council on Privatisation (NCP), chaired by the Honourable Minister of Industry, Trade and Investment, was charged with the responsibility of midwifing the revitalisation of the NCX through the approved strategic equity investment in the exchange by the NSIA.
The BPE DG noted that “it is envisaged that within a period of 3-5 years, NCX would have been sufficiently transformed to attract high caliber private sector investors to take over. As such it is very important that an effective monitoring mechanism is put in place to ensure that the investments are prudently used and the business plan faithfully implemented.”
Okoh thanked the Chairman of the National Council on Privatisation (NCP) who approved that the operations of the NCX should be revitalized through a Strategic Equity Investment by the NSIA for a period of 3 – 5 years.