The Bayelsa State Government says it has concluded arrangements to commercialise some of its parastatals and agencies.
The measure is to enable the state to diversify the local economy in the face of dwindling revenue from the Federation Account, a Government House statement said on Thursday.
The statement quoted the State Chief Economic Adviser, Mr. Duate Iyabi, as saying the resolution was reached at the 59th Executive Council meeting of the state government in Yenagoa, as part of efforts to move away from its mono-economy.
According to Iyabi, the three key areas of the government’s focus will be on power generation, agriculture as well as land ownership and housing, as the administration can no longer sustain its recurrent expenditure from the federal allocation.
He explained that the government’s decision to commercialise the state-owned parastatals and agencies was borne out of its inability to properly manage its businesses.
He stressed that the move would boost the internally generated revenue of the state.
On power generation, Iyabi described the sector as an area where the state had comparative advantage, noting that arrangements were underway to attract power developers to set up their plants and sell power to the national grid.
On the provision of housing, he noted that the government had identified two key locations in the state where it would embark on the construction of low-ost houses, medium and high-brow houses for the people under a public, private partnership.
Also, the Commissioner for Trade, Industry and Investment, Kemela Okara, said the commercialisation policy was targeted at realising the full potential of the agencies and the parastatals with a view to ensuring job creation, revenue generation and efficient service delivery.
Allaying the fears of workers, Okara explained that the government would carry out an audit exercise in such enterprises with a view to ascertaining their economic viability.
He said, “The primary objective is that we want to achieve the true economic potential of these enterprises because the idea behind setting them up in the first place was very good.”
