FG Sends Important Message to Nigerians Over Privatisation of DisCos

• Engr Abubakar Aliyu has been briefed by Nigerian Electric Regulatory Commission ("NERC") and Bureau of Public Enterprise ("BPE")
• The minister of power was briefed on the recent events relating to corporate governance in Kano, Benin, Kaduna, Ibadan and Port Harcourt DisCos
• Meanwhile, electricity consumers have been reassured over the recent changes in the governance of the DisCos

Honorable Minister of Power, Engr Abubakar Aliyu has been briefed by Nigerian Electric Regulatory Commission ("NERC") and Bureau of Public Enterprise ("BPE") on the recent events relating to corporate governance in Kano, Benin, Kaduna, Ibadan and Port Harcourt electricity distribution companies ("DisCos") necessitating a change in the respective Board of Directors and Management.

The changes announced were as a result of the receivership of the core investors in Kano, Benin, Kaduna and Ibadan DisCos whereas the actions in Port Harcourt are sought to provide much needed liquidity and prevent the insolvency and risk of collapse of the utility. In implementing the changes, the Ministry shall ensure that the changes in corporate governance do not impact on the service and stability of the DisCos.

Read also

Sigh of relief at last as Buhari's govt announces restructuring, takeover of Discos

We wish to reaffirm that while the Government continue to hold a 40% equity stake in all the DisCos, the utilities are still private sector led "going concerns" falling under the provisions of the COMPANIES AND ALLIED MATTERS ACT (CAMA) and subject to regulation by NERC.

The ministry has received a confirmation from the BPE and the Central Bank of Nigeria that in exercising the rights of lenders to the core investors, the financial institutions do not retain the ownership of the shares and management of the DisCos in perpetuity. It is therefore expected that clear timelines for exit of the banks would be prescribed by the regulators as and when appropriate.

We wish to reassure electricity consumers that the recent changes in the governance of the DisCos would not adversely impact on the ongoing reform initiatives including the National Mass Metering Program.

Read also

Kuje Prison Break: FG Finally Reveals Abba Kyari's Location

Despite heavy investments, Nigeria now generates 3,900 megawatts of electricity

Legit.ng reported that Nigeria now generates about 3,904 megawatts of electricity for its over 200 million population.

The ministry of power said the current power generation is a marginal improvement, a statement by the ministry said on Tuesday, April 12, 2022, to bring it to 86,760.88MWH.

Power generation stood at 3,904MW as of Tuesday, April 12. 2022 before dropping by 1.96 per cent in comparison to 3,982.8MW recorded on Monday, April 11, 2022, a Nairametritcs report said.

Source: Legit.ng