What Osun’s Mortgage Bank Says About Government-Owned Businesses

Nigeria’s privatisation policy assumes that government should not operate profit-making businesses. Yet the power-sector experience since PHCN was sold raises questions about whether that approach should be absolute. State-backed ventures have also produced lasting businesses. Examples include firms founded by the old Western Region government, while China continues to earn substantial revenue from state-owned enterprises. The argument is not against private investment, but that governments can originate viable businesses and later partner with professional investors. Osun State offers an example through Living Trust Mortgage Bank, formerly Omoluabi Mortgage Bank. The institution began as Osun Building Society in 1993 and was listed on the NGX in 2013. Osun State and its local governments retain a significant stake, while private investors and Citi Trust Holdings are also shareholders. The bank reportedly pays regular dividends, showing how public ownership and private-sector management can coexist. Osun could apply a similar model to revive Adediran Steel and Wire Industries. The state could reopen the company, improve operations with credible partners, then consider a public listing to raise capital and expand production. Other states could also use this model to build commercially viable enterprises instead of relying solely on privatisation.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.