Privatisation  The supply of stocks to the stock market is currently being boosted by the Federal Government’s privatisation programme. The programme, which was articulated by the new civilian government in 1999, derives its legal force from The Public Enterprises (Privatisation and Commercialisation) Act of 1999. The main objectives of the programme include: (a) to move substantial ownership, control and operations of       certain key economic enterprises from the public to the       private sector; (b) to attract the private investment necessary as a catalyst for       economic growth, so as to close the supply and efficiency      gaps in the Nigerian economy; (c) to check the present absolute dependence on the Treasury      for  funding by otherwise commercially oriented parastatals      and so, encourage their approach to the Nigerian and      international capital markets to meet their funding needs; (d) to create jobs, acquire new knowledge, skills and       technology,  and expose Nigeria to international competition. The implementation of the programme is in three phases namely:

I. Full Divestiture of Federal Government shares in Oil Marketing     Companies, Banks and Cement Plants - a total of 14     companies, most of which are already quoted on The Nigerian     Stock Exchange. This phase was successfully implemented      between December 1999 and June 2000. II. Full Divestiture of Federal Government ownership in Hotels,     Vehicle Assembly Plants and other enterprises operating in     competitive markets. The list includes Nigeria Airways, and its     subsidiaries, Nigeria Aviation Handling” Company, Federal     Airports Authority and subsidiaries. Others include Hotels     (five), Sugar companies (four), Agro-Allied companies     (seven),  Nigeria Machine Tools, Nicon Insurance and Nigeria     Reinsurance Corporation, Aluminum Smelter Co., Delta Steel,     Nigerian Mining Corp and Nigerian Coal Corp. Others are Jos;     Oshogbo and Katsina Steel Rolling Mills, Nigeria Iron Ore     Mining Co., etc. III. Partial Divestiture of Federal Government interest in major       public enterprises currently operating in non-competitive       sectors like electric power, telecommunications, oil and gas       and the like. They include Nigeria National Petroleum       corporation, Kaduna Refinery, Warri Refinery, Nigeria Gas       Co” Nigeria Petroleum Development Co., Pipelines &       Petroleum Marketing Co., Eleme Petrochemicals, NITEL,. M-       TEL and National Electric Power Authority NEPA).

The implementation of phase I of the programmes so far has resulted in increased supply of tradeable securities to the Stock Market. This’ is a marked departure fro~ the Government’s characteristic buy-hold attitude to the shares in question. The future of the Exchange is therefore bright as more enterprises are billed to be privatised in the next two years. Most of these possess high market capitalisation potentials, for example, the Nigerian Telecommunications (NITEL) and the National Electric Power Authority (NEPA).