The Bureau of Public Enterprises (BPE) has given Lead Capital Consortium a 60-day deadline to conclude the strategic equity investment by the National Sovereign Investment Authority (NSIA) into the Nigeria Commodity Exchange (NCX).
The Director-General, Mr. Alex A. Okoh, gave the deadline yesterday 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).
“This assignment as outlined in the work plan, commences Wednesday 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 time frame envisaged,” he stated.
The BPE boss pointed out that the transaction was unique in the sense that unlike in the traditional privatisation transaction approach where a private sector entity was 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 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 thanked the Chairman of the National Council on Privatisation (NCP) who approved that the operations of the NCX should be revitalised through a strategic equity investment by the NSIA for a period of three to five years.