Request for Expressions of Interest at Federal Ministry of Agriculture and Rural Development and the Bureau of Public Enterprises (BPE)
The Federal Ministry of Agriculture and Rural Development and the Bureau of Public Enterprises (BPE)
In collaboration with The Federal Ministry of Finance
Public Private Partnership (PPP) Project Transaction Advisory Services for the Privatization of Bank of Agriculture (BOA)
Request for Expressions of Interest
The Federal Government of Nigeria (FGN) has received financing from the World Bank toward the cost of the Public Private Partnership (PPP) Project and intends to apply part of the proceeds for consulting services. The consulting services are Transaction Advisory services for the Privatization of Bank of Agriculture (BOA). The Transaction Advisers to be selected are to assist the FGN to privatize the Bank of Agricultural with all its branches across the country. Details regarding BoA’s operations and history is detailed below and can also be found on the bank’s website at: www.bankofagricultureng.com
The Bank of Agriculture Limited (BOA) is a Nigerian national agricultural and rural development finance institution, wholly owned by the Federal Government of Nigeria (FGN) with Ministry of Finance Incorporated (MOFI) having 60% of the equity and the Central Bank of Nigeria (CBN) 40%. The Bank was incorporated as Nigerian Agricultural Bank in 1973 and in 1978, was renamed Nigerian Agricultural and Cooperative Bank. In 2000, it was merged with the People’s Bank of Nigeria (PBN) and took over the risk assets of Family Economic Advancement Programme to become the Nigerian Agricultural Cooperative and Rural Development Bank Limited. Subsequently in 2010 the Bank’s name was changed to BOA in a bid to reposition the Bank into an effective and sustainable development financial institution in the country.
With its head office in Kaduna, and operating from about two hundred and fourteen (214) locations across the country’, BOA engages in direct lending to applicants who are engaged in agriculture and small to medium sized businesses located in rural areas. It also provides credit facilities to issuing organizations through its on-lending operations. BOA also operates a co-financing scheme that enables it to partner with other organizations to pool resources to grow the operations of its customers.
The main objective of this consultancy is to provide advice, policy options and support to the Federal Government of Nigeria for the restructuring of BOA and selection of core investor(s) to take majority stake in the enterprise. The due diligence, viability assessment and restructuring of the enterprise, will form a key input in the project preparation. The assignment is for a period of 12 – 13 months and the Advisers are expected to:-
- Prepare BOA for privatization by providing advice and support for the restructuring of the bank;
- Provide the requisite advice and support required for the FGN to implement the privatization of BOA in a manner consistent with relevant national policies and laws and international best practices; and,
- Provide advice and transaction support for the privatization process so that BOA can be sold to reputable investors).
The scope of work for this assignment is in three (3) phases as follows:-
Phase I:- Due diligence, short term restructuring plan development, and development of a privatization strategy plan; – The Adviser’s tasks for this phase shall include but not limited to:
- Review of issues related to the existing legal and regulatory framework for BOA, identifying gaps, if any, and how to remedy the situation to allow for private participation in the ownership and management of the enterprise;
- Assess any provisions in the existing laws, policies which limit or impose a burden on the proposed privatisation of BOA;
- Prepare an assessment of the needs of BOA for additional capital from the FGN to bring its capitalization to at least a 10% capital adequacy ratio (CAR- calculated using CBN commercial bank regulations).
Phase 2:- Identification and selection of qualified investors – The Adviser shall assist in preparing and implementing the privatization process, including all documentations required for the selection of the potential investor in accordance with international best practice.
- With agreement of the FGN/National Privatization Council, establish a short list of investors to be invited to conduct due diligence on BOA;
- Co-ordinate and facilitate the execution of due diligence by potential strategic and/or financial investors, including management of the BOA data room and meetings between potential investors and BOA management and responsible FGN officials;
Phase3:- Negotiation and Contract Close: – The Advisers in this phase shall:
- Assist and advise the FGN in negotiation and closing of a transaction with strategic and/or financial investor(s), including negotiation of the final share transfer agreement, shareholder agreement, and investment agreement;
- Take all other actions as required to complete the sale of a majority of BOA in a lawful manner.
The Federal Ministry of Agriculture and Rural Development and the Bureau of Public Enterprises (BPE) in collaboration with the Federal Ministry of Finance now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services.
Submission of Expressions of Interest (EOIs):
Prospective Transaction Advisers should submit Expression of Interest detailing the following information as basis for pre-qualification:
- Profile of firm/consortium including ownership structure and role of each corporate entity with full contact details of each firm;
- Details of direct experience advising governments in the restructuring and Privatization transactions, particularly in the financial sector;
- International track record of successful closing of Privatizations, particularly in the financial sector;
- Description of roles played in at least five (5) industrial/banking privatization transactions closed in emerging markets during the past seven (7) years (at least one of which should be in the past three (3) years);
- Relevant experience in privatization of industrial Banks/facility;
- Copies of unabridged financial reports for the last 3years
- Experience working in Nigeria and/or sub-Saharan Africa;
The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines:Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrower, Revised January 2011.
Consultants may associate with other firms in the form of a joint venture or a sub consultancy to enhance their qualifications. A Consultant will be selected in accordance with the Quality and Cost Based Selection Method set out in the Consultant Guidelines.
Further information can be obtained at the address below during office hours 9.00 am to 4:00pm Monday through Friday (except public holidays) from Dr. Vincent O. Akpotaire Tel: +234803 844 5006, E-mail: vakpotaire@bpeng.org and Mr. Nelson T. Hundumofore, Tel: +234-803-787-0944, E mail. nhundumofore@yahoo.com
Expressions of interest must be delivered in a written form to the address below in person, or by mail, not later than
3:00pm on Monday 14th July, 2014
The Director General
Bureau of Public Enterprises
Hamza Zayyad House, 1 Osun Crescent,
Off Ibrahim Babangida Way, Maitama Abuja, Nigeria
Attention:
Dr. Vincent O. Akpotaire (Ag. Director National Facilities & Agricultural Department)
Tel: +234 803 844 5006
- Only short-listed Consultants will be contacted.
