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Nigerian government’s 40% stake in DisCos transferred from BPE to MOFI

Power

Nigerian federal government transferred its 40 per cent shareholding in electricity distribution companies from the Bureau of Public Enterprises to the Ministry of Finance Incorporated, MOFI.

Wale Edun, the Minister of Finance, disclosed this in an order dated January 10, directing the board of directors of the MOFI to assume ownership, control, and management of all equity holdings of the Federal Government of Nigeria in Nigeria’s 11 DisCos.

“Assume ownership, control, and management of all equity holding of the Federal Government. Of Nigeria, as contemplated and provided for by law and/or any contract; and issue all appropriate notices, instruments, and documents required to give effect to this directive,” he directed.

DAILY POST learnt that in Section 9 of the now-repealed Electric Power Sector Reform Act, 2005, the BPE was the holder of record of the equity interests of the FG in DisCos.

To this end, the BPE had also nominated various persons to be directors in DisCos and managed the implementation of the various rights and obligations of the FGN in the company.

“But with the new development, the BPE nominee director on the board of directors of this company is withdrawn with immediate effect and share certificates of the company issued in the name of the BPE are to be immediately withdrawn and cancelled,” said Armstrong Takang, CEO, MOFI, in a letter dated January 10, 2023.

He added: “A new share certificate for all outstanding shares of the FGN in the company is to be issued in the name of “Ministry of Finance Incorporated.

“All minutes of board meetings, current management operational reports, extant strategic business and operating plans, management accounts and audited financial statements going back to the 2021, 2022 and 2023 financial years should be immediately delivered to MOFI.”

Takang said he expects DisCos to “immediately take on board and implement these decisions.”

Last December, BPE disclosed plans to sell off the remaining 40 per cent shares of the federal government in the DisCos and four other assets in 2024.

Other assets that will be sold off via public offerings at the capital market include Eleme Petrochemicals Company Limited, Nigeria Reinsurance, NICON Insurance, and Nigeria Machine Tools in Osogbo, according to the BPE.

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