7TH NATIONAL ASSEMBLY FIRST SESSION NO. 18 28 SENATE OF THE FEDERAL REPUBLIC OF NIGERIA ORDER PAPER Tuesday 19th July, 2011 1. Prayers 2. Approval of the Votes and Proceedings 3. Oaths 4. Announcements (if any) 5. Petitions PRESENTATION OF BILLS 1. National Order of Precedence Bill 2011 (SB. 12)- First Reading Senator Victor Ndoma-Egba OFR, SAN (Senate Leader) 2. Indigenous Oil Companies (Regulation and Fiscal Terms) Bill 2011 (SB. 14) - First Reading Senator Victor Ndoma-Egba OFR, SAN (Senate Leader) 3. National Assembly Budget and Research Office Bill 2011 (SB. 15) - First Reading Senator Victor Ndoma-Egba OFR, SAN (Senate Leader) 4. Transfer of Convicted Offenders (Enactment and Enforcement) (Amendment) BiII2011) (SB. 26) - First Reading Senator Victor Ndoma-Egba OFR, SAN (Senate Leader) 5. Chartered Institute of Management Accountants (Est. etc) Bill 2011 (SB. 11) - First Reading Senator Aloysius A. Etok (Akwa Ibom North West) ORDERS OF THE DAY MOTION 1. The Collapse of Some Privatized Federal Government Companies in Nigeria: Sen. Ahmad I. Lawan (Yobe North) Co-Sponsors: Sen. Smart Adeyemi (Kogi West) Sen. Ayogu Eze (Enugu North) Sen.Ganiyu O. Solomon (Lagos West) Sen. George T. Sekibo (Rivers East) Sen. Sahabi A. Ya'u(Zamfara North) Sen. Abubakar A. Bagudu (Kebbi Central) Sen. Zainab A. Kure (Niger South) Sen. Nkechi Nwaogu (Abia Central) Sen. Suleiman Adokwe (Nassarawa South) Sen. Abdul A. Ningi (Bauchi Central) Sen. Alkali A. Jajere (Yobe South) Sen. Chris N.D Anyanwu (Imo east) Sen. Olushola Adeyeye (Osun Central) Sen. Enyinnaya Abaribe (Abia south) Sen. Kabiru I. Gaya (Kano South) Sen. Aloysius Etok (Akwa Ibom North West) Sen. Odion Ugbesia (Edo Central) Sen. Abdul Azeez Usman (Jigawa North East) Sen. Joshua Dariye (Plateau Central) Sen. Hope Uzodimma (Imo West) PRINTED BY NATIONAL ASSEMBLY PRESS. ABUJA 29 Tuesday, 19th July,2011 18 The Senate Notes that the federal government of Nigeria embarked on the privatization and commercialization of federal public enterprises through the enactment of privatization and commercialization Act No. 25 of 1988 , Bureau of Public Enterprises Act No. 78 of 1993 and Public Enterprises (privatization and commercialization) Act of 1999; Recognising that the primary and fundamental purpose of privatization by the federal government is to divest and free the subsidies that were paid into the operations of the enterprises, so as to fund better the provision of critical and crucial infrastructure; Aware that the expected consequences of the process is to also enhance the performance, increase the efficiency and effectiveness of the enterprises to produce goods and services for economic development and growth of the country; Fully aware that successful Core Investors are to be formidable and experienced groups with capabilities and capacities for adding value to enterprises and making the operate profitably in the face of international competition .Hence , the Core Investor must possess the technical know- how in relation to the activities they wish to invest, possessthe financial muscle to turn around the fortune of the enterprises in the short /medium/ long term and possess the management know-how to run the business profitably in a competitive environment where the market forces dictate the businessclimate; Acknowledging that, amongst the expected conditions for divestment of government equities are technology transfer , the future development of the enterprises as perceived by the investors, the funding arrangements for rehabilitation , expansion or diversification of the enterprises post privatization and staff welfare; Informed that many federal government enterprises from all sectors of the economy have been sold out to various Core Investors for over two decades under the government privatization program; Concerned that, the chairman of the National Council on Privatization (NCP), the Vice President of Nigeria told the nation that" 80 percent of government companies that have been privatised have failed to operate properly due to lapses in the privatization process ": Further concerned that due to the collapse of the privati sed companies, there are massive loss of jobs and colossal loss of economic returns to the Nigerian economy. For example, the privatised companies in steel sector that used to employ up to 20,000 workers, now have less than 4,000 after the exercise. The electricity Meter Company of Nigeria, Zaria that was privatised in December 2002, recently fired about 90 percent of its workforce; Worried that the privatization program is a fundamental plank of the federal government policy to revamp, develop and grow the Nigerian economy; Accordingly resolves to: i. Set up a special committee to investigate the process through which the bureau of public enterprises(BPE) privatized the companies; ii. Establishthe agreementsand/or conditionsupon whichthe privatization was consummated; iii. Determinehow muchwas realized from the sale of the companies and where the proceedswere paid into; iv. Determinehow many jobs were lost and gained after the privatization of companies; 18 Tuesday, 19th July,2011 30 v. Identify factors that are militating against the expected improved and good performance of the privatized companies; vi. Hold public hearing so as to enable interested stakeholders make presentation on the best way forward with the privatization and the desirable development and growth of the sold companies; and vii. Presenta report to the senate within 4 weeks. CONSlDERA TlON OF A BILL 1. A BILL for an Act to ESTABLISH the Institute of Safety Professionals of Nigeria (ISPON) 2011. (SB. 2) Second Reading Senator Wilson Ake (Rivers West).