The Benue State Investment and Property Company (BIPC) is seeking recapitalization to address its financial challenges, grow its investments, and enhance profitability as a state-owned enterprise.
The Managing Director/CEO of BIPC in a memo to the Benue State Commissioner Ministry of Industry, Trade & Investment dated 19th November 2024 said the proposed recapitalization can help BIPC address key challenges particularly its liabilities currently put at over N3,226 billion, and restore its financial stability.
He also said the company faces numerous challenges, including outdated infrastructure and operational inefficiencies with non-performing assets of 89%.
He noted that the remaining 11% Asset has been on a long-term lease of 10-35 years and BIPC is to receive rental payment as of 2027.
Dr. Asemakaha in the memo also stated that “a forensic audit analysis of BIPC’s financial statements, records, and operations from 2015 to 2023 revealed significant losses totaling N10,229,702,342.”
According to the BIPC MD, to ensure the success of BIPC’s recapitalization, it is essential to conduct a thorough assessment of the company’s financial position, operational efficiency, and market prospects, and develop a comprehensive restructuring plan including measures to improve operational efficiency, reduce costs, and enhance revenue generation.
He said recapitalization will help secure funding from credible sources, such as the state government, private investors, or development finance institutions.
With capital injection, the MD further stated that BIPC will have the capacity to Implement robust governance and oversight mechanisms to ensure transparency, accountability, and effective management of the recapitalized entity.
