Banks get guidelines to sell 60% shares in DisCos

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The Bureau of Public Enterprises (BPE) has issued guidelines to the banks/lenders for the sale of their 60% shares in the assets of Electricity Distribution Companies (DisCos).

This was one of the highlights of the National Council on Privatization (NCP) meeting held last Friday, December 16, 2022 at the Presidential Villa, Abuja.

Some of the DisCos are indebted to the banks which had necessitated the takeover of the power firms’ assets by the lenders.

Those affected are Kano, Benin, Kaduna, Ibadan, and Port Harcourt DisCos.

The Council chaired by Vice President Yemi Osinbajo was informed that the notifications of change of Directors for all the DisCos had been filed at the Corporate Affairs Commission.

The Council also received an update on the development of a 1,650 Megawatts Hydro Power Plant in Makurdi, Benue State, particularly the inauguration of the Project Steering Committee and the proposed publication on the Expression of Interest for the engagement of a Transaction Adviser for the project.

On the concession of the Zungeru Hydroelectric Power Plant, the Council was informed that Requests for Qualification (RfQs) were received from 11 Consortiums, out of which 3 (NSP Consortium, Mainstream Energy and Africa Plus Partners) were shortlisted to present proposals for the concession.

Further updates were received on the sale of five NIPP Power Plants, particularly the engagements with the Nigerian Governors Forum on the NIPP transaction, and the resolution by the governors to constitute a committee to review the transaction and revert to the Bureau.

The Council expressed satisfaction with the BPE’s handling of the engagements with the governors on the sale of the NIPP and the Federal Government’s 40% interest in the Aba Ring-Fenced area.

In attendance at the meeting were council members including Ministers of Power, Alhaji Abubakar Aliyu; Finance, Budget and National Planning, Hajiya Zainab Ahmed; the Director-General of the BPE, Mr. Alex Okoh; representatives of Federal Ministry of Justice, heads of relevant MDAs and other senior government officials.

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