Oyo Govt. Takes Action On State-Owned Moribund Assets

Channels Television  
Updated April 4, 2017

The Oyo State Government, has disclosed that actions are being taken on the state owned moribund companies, and other wasting assets to relieve government of excessive liabilities and unnecessary government expenditure.

The Commissioner for Information, Culture and Tourism, Mr Toye Arulogun, who disclosed this revealed that the moribund and wasting assets are being reviewed by a committee that will make recommendations for such assets under three main categories, after a thorough determination of their current viability and prospects of future economic benefits.

The three categories which the Moribund and Wasting Assets Committee is expected to recommend such companies for Concession are, Public Private Partnership (PPP) Arrangement and Outright sale.

The commissioner explained that this step is in line with the spirit of the government’s 2017 Budget of Self-Reliance, noting that some of these assets still cost the government a huge expenditure despite their moribund or wasting state.

According to Arulogun, “the theme of the 2017 appropriation is “Budget of Self-Reliance.

“The government wants its assets to yield revenue rather than being waste pipes. “We therefore need to stop the hemorrhage.

“Under any of the three main categories, government will earn revenue and the fortunes of the assets will turn around with strong multiplier effects on the Oyo state economy.

“The Oyo State Government’s conviction is that instead of having these moribund assets lay idle across the state, we want to revamp those that can be revamped, put some on the PPP platform and sell others out rightly.

“However, the government will not rush into taken decisions on these moribund assets.

“The input of relevant stakeholders and the general public will be needed, the committee is consulting widely and still open to more contributions”, he stressed.

The Commissioner also said that the committee has been mandated to follow the principles of due diligence in discharging its responsibilities, explaining that the moribund assets will be subjected to proper inventory, appraisal and valuation before actions are taken on them.

Some of the moribund companies and wasting assets being reviewed are Conpole Limited, Cultural Centre, Nigeria Paper Mill Ibadan, Trans Motel Jericho, Trans Motel Iseyin, Ado Awaye Lake, Bowers Tower, Cashew Ind. Limited, Fasola farms amongst others.