The Director General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh, on Tuesday said that the sale of 21 percent shares of the Federal Government in the Nigerian Security Printing and Minting Company (NSPMC) Plc to the Central Bank of Nigeria (CBN) would rake in over N17 billion to the national treasury.
Okoh was quoted in a statement issued by the Head, Public Communications of the BPE, Amina Tukur, as disclosing the figure at the signing ceremony for the sale of the Federal Government’s 12.4 billion shares in the NSPMC to the Central Bank of Nigeria (CBN) at the Presidential Villa, Abuja.
The BPE’s boss said that the conclusion of the transaction represents another success in the implementation of the Federal Government’s privatisation and commercialisation programme, adding that government is handing over to the CBN a company with tremendous potential to achieve significant growth.
The DG said this could be attested to based on the global market for security printing estimated to grow at about 4.8 percent per annum to $34.3 billion by 2022; Africa is a fast growing market for security printing.
According to him, the industry is projected to grow at an average annual rate of 9.6 percent over the next five years based on high population growth and increased mobility across the region as well as increased spending on identity programmes.
Okoh hinted further that the global market for passports and ID cards was valued at around $3.7 billion and is growing at six percent per annum, adding that in the NSPMC’s core operation, which is currency printing, the total amount of cash in circulation is growing at four percent per annum globally and is expected to increase at a similar rate in future.
He recalled that the earlier effort to privatise the mint between 2002 and 2004; pursuant to section 1 (3) of the Public Enterprises (Privatisation and Commercialisation) Act were unsuccessful, necessitating the National Council on Privatisation (NCP) to formulate a different transaction strategy and approved the strategic investment by the CBN in the company.
The BPE’s boss clarified: “The purpose of the strategic investment was for CBN to manage, restructure and restore the company to profitability within a period not exceeding 5 years, following which it would be privatised by the Bureau.
“In compliance with NCP’s directive, the Bureau warehoused 12.69 billion shares of the Federal Government’s holding in the Mint with the CBN at a par value of 0.50k per share amounting to N6, 344,900,000. It was further agreed that this consideration would be refunded to the CBN from the proceeds of sale realized from the eventual privatization of the company”, he added.
Okoh noted that CBN’s strategic investment in the company was a success, achieving its objective of turning around the fortunes of the company and returning it to profitability.
Following the expiration of the strategic investment period, the Director General added “the CBN indicated its strong intention to acquire the company on an arm’s length basis, noting the sensitive and strategic nature of the security printing and minting services rendered by the company which include immigration and electoral materials”.
The BPE’s boss said that after a careful consideration of the pertinent issues, the Bureau submitted a proposal to the NCP to formalise the sale of 21 percent of the government’s interest in the company to the CBN while retaining 10.1 percent equity holding which was approved by the Council.
The Central Bank Governor, Godwin Emefiele, said that the NSPMC was a national asset treasured by the government.
He explained that the company had consistently been run at a loss until the intervention of the CBN, adding that the intervention of the CBN brought to an end the importation of currency to the country.
Emefiele disclosed that the company had ceased producing international passports despite its capacity to do so, adding that if well positioned, it would provide national security materials sufficiently for the public sector and specialised security materials for the private sector, such as banks digital payment cards.
