Despite Intervention In Five DisCos, It Remain Private Sector Driven, Power Minister Assures

The Minister of power, Engr. Abubakar D. Aliyu has assured that despite Government’s intervention in the management of five power Distribution Companies (DisCos) to enhance its efficient management, it is still private sector driven.

He said timelines for the exit of the banks from the DisCos would be set by the Nigerian Electricity Regulatory Commission (NERC) when appropriate.

A statement by the Special Adviser on Media to the Minister, Malam Isa Sanusi, indicated that the Minister had been briefed by NERC and the Bureau of Public Enterprises (BPE) about the recent interventions relating to corporate governance in Kano, Benin, Kaduna, Ibadan and Port Harcourt electricity distribution companies (DisCos) necessitating a change in respective Board of Directors and Management.

He explained that 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 sought to provide much needed liquidity and prevent the insolvency and risk of collapse of the utility.

The Minister assured that 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.

“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,” the minister said