The new Government Owned Enterprises Act, 2025 creates a unified legal framework for state-owned enterprises, replacing the patchwork of policies and presidential directives that previously governed hundreds of parastatals. It introduces tougher performance targets, clearer ownership and oversight structures, and stronger boards, with policymakers signalling that chronically loss-making entities will face restructuring, privatisation or closure.
Thank you for reading this post, don't forget to subscribe!The reset follows a High Court ruling that declared a presidential executive order on state corporations unconstitutional, reinforcing that major changes to SOEs must go through Parliament. For business, this law will influence competition dynamics, PPP opportunities and partnerships with state firms in sectors like energy, logistics and financial services.
