The Minister of Water Resources, Engr. Suleiman Adamu has said that the need to reform the nation’s River Basin Development Authorities (RBDAs) is to seek alternative sources of funding to shore-up their revenue base and make them self-reliant.
Declaring open a three-day business implementation training on the partial commercialisation of four pilot River Basin Development Authorities (RBDAs) in Abuja on Tuesday, May 4, 2021, Adamu noted that the Federal Government was not unaware of the challenges facing the RBDAS.
He reiterated that the reform of the RBDAs was not privatization but partial commercialization to make them economically viable, self-reliant and sustainable even as he assured of no job losses.
The Minister commended the Bureau of Public Enterprises (BPE) and the Transaction Adviser for organizing the training aimed at building requisite capacity for the RBDAs staff and other relevant actors towards a successful Commercialization of the pilot projects.
In his remark, the Director General of the Bureau of Public Enterprises Mr. Alex A. 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.
It would be recalled that the Federal Ministry of Water Resources in collaboration with the Bureau of Public Enterprises (BPE) have selected four (4) River Basin Development Authorities namely: Ogun -Osun RBDA, Upper -Niger RBDA, Sokoto -Rima Basin RBDA and Niger- Delta RBDA for phased pilot partial Commercialisation.
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.
- 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.
- Viability and self-sustainability of the RBDAs.
- Goal oriented management and staff, whose future is linked to the fortunes of the organisations.
- Employment generation for large numbers of youth in rural areas.
Amina Tukur Othman
Head, Public Communications
May 5, 2021.