The firm never ceased being in the eyes of the storm from 2007 till date. Judgment was passed in favor of Global Fleet and the core investor was restored. Government’s action was challenged by the core investor in the law court. Funmi Babington Ashaye, a former Managing Director of Cornerstone Insurance Plc as MD/CEO of Nicon in 2007. In its place, government appointed an interim management team led by Mrs. The face- off deepened, prompting the Federal Government to sack the management of Nicon headed by Ibrahim. The core investor, led by a billionaire, Jimoh Ibrahim, Bureau of Public Enterprises (BPE) and National Insurance Commission (NAICOM), the sector’s regulator, were entangled on issues bordering on recapitalisation. Three years into the historic transaction by PBE, precisely in 2007, it was confronted by multiple challenges. Nicon Insurance Plc, Nigeria’s hitherto insurance giant, was privatised in 2004 by PBE with the exercise producing a core investor – Global Fleet Limited. Two enterprises sold to core investors by BPE were taken over due to some ugly developments. Privatisation exercise recorded a sore point in 2021. For the 2022 fiscal year, the Federal Government earmarked N90.7 billion as expected privatisation proceeds to finance a portion of the budget deficit. 8 million, infrastructure and public private partnership with four projects to remit N626 million and post transaction management department with 9 projects is to remit N212 million. Of the amount, energy department assigned with nine projects was billed to remit highest sum of N484.4 billion, industries & communication department with eight projects to remit N9.2 billion development institutions and natural resources department with six projects to remit N148. Currently, the two businesses are well managed, creating jobs and wealth for the economy. Hilton Hotel Plc and Nigeria Aviation Handling Company are a few examples of sold enterprises faring better under the management of private investors. Over the years, privatisation inspired value addition in some of the enterprises taken over by core investors. The 21st Century modern economy places emphasis on a private led economy a paradigm shift that leaves government with the single most important task of providing an enabling environment conducive for businesses to thrive. Privatisation exercise isn’t a bad economic policy. Two firms sold by the privatisation umpire, Bureau of Public Enterprises (BPE), Nicon Insurance Plc and Abuja Electricity Distribution Company (AEDC), recently experienced change of management as both failed privatisation litmus test. The takeover of Nicon Insurance Plc and AEDC years after their transactions were consummated by privatisation agency, Bureau for Public Enterprises (BPE) brings to the fore the importance of conducting thorough due diligence on core investors bidding for controlling stakes in government enterprises, ABDULWAHAB ISA reports
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