BPE Urges Economic Shift: Less Borrowing, More Private Sector Investment

 

The Director-General of the Bureau of Public Enterprises (BPE), Alex Okoh, emphasized the bureau’s commitment to optimizing the Federal Government’s assets through private sector investment. Speaking at a media event in Abuja, Okoh stressed the need for the government to reduce dependence on borrowing and instead explore private sector investments to fund fiscal plans.

Highlighting the government’s orientation towards a free market and a private sector-driven economy, Okoh underscored the importance of encouraging the private sector to play a more dominant role. He emphasized the shift from keeping everything within the government, even when inefficiently managed.

Okoh stated, “Our position has always been that we need to optimize the assets the Federal Government has and rely less on borrowing to fund our fiscal plan. That is the role we will continue to play and more aggressively in 2024.”

The Director-General noted that Nigeria’s infrastructure stock to Gross Domestic Product (GDP) was around 35%, which he considered low for the size of the economy. Comparing with other African countries, he pointed out that Ghana had a 45% infrastructure stock to GDP ratio, South Africa stood at about 70%, and Egypt at about 68%.

Calling for a reevaluation of economic growth strategies, Okoh urged media support in framing the narrative of economic liberalization and opening the economy for private sector participation. He emphasized that the government’s role should be to provide an enabling environment for businesses to thrive, promoting efficiency and prosperity.