By Ndubuisi Francis
The federal government has commenced a business implementation training as it moves towards the partial commercialisation of four pilot River Basin Development Authorities (RBDAs) in the country.
Slated for phased partial commercialisation are the Ogun-Osun RBDA, Upper Niger RBDA, Sokoto-Rima RBDA and Niger Delta RBDA.
The Federal Ministry of Water Resources, in collaboration with the Bureau of Public Enterprises (BPE), had selected the four for the exercise.
Declaring open a three-day business implementation training on the partial commercialisation of the four pilot RBDAs in Abuja, Tuesday the Minister of Water Resources, Suleiman Adamu, expressed the need to reform them to seek alternative sources of funding to shore up their revenue base and make them self-reliant.
A statement issued by the BPE quoted Adamu as saying that the federal government was not unaware of the challenges facing the RBDAs, explaining that the reform of the Authorities was not privatisation, but partial commercialisation to make them economically viable, self-reliant and sustainable.
The minister assured Nigerians of no job losses, commended the BPE and the Transaction Adviser for organising the training aimed at building requisite capacity for the RBDAs’ staff and other relevant actors towards a successful commercialisation of the pilot projects.
In his remark, the Director General of the BPERSONNEL, Mr. Alex Okoh, reiterated the federal government’s unwavering commitment to the promotion of private sector participation in the operation, management and maintenance of the RBDAs without divesting its shares.
The specific economic benefits of reform and commercialisation of the RBDAs include improved efficiency, effectiveness and cost consciousness, significantly reduced dependence on federal government for funding.
The economic benefits also include realistic capital structures and improved ability to access private capital for investment in the infrastructure of the RBDAs, financial solvency through effective cost recovery, cost control and prudent financial management.
Others are viability and self-sustainability of the RBDAs, goal-oriented management and staff, whose future is linked to the fortunes of the organisations and employment generation for large numbers of youth in rural areas.
