Federal Government of Nigeria has announced the decision to transfer its 40 percent ownership in electricity distribution companies (DisCos) from the Bureau of Public Enterprises (BPE) to the Ministry of Finance (MOFI).
Gatekeepers News reports that Wale Edun, who is the Minister of Finance and Coordinating Minister of the Economy, issued an order on January 10th directing the board of directors of MOFI to assume control and management of all equity holdings of the Federal Government of Nigeria in Nigeria’s 11 DisCos.
Edun also directed MOFI to “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 which are required to give effect to this directive”.
Previously, under the statutory mandate in Section 9 of the now-repealed Electric Power Sector Reform Act of 2005, the BPE held the record of the equity interests of the FG in DisCos. The BPE had also nominated various persons to be directors in DisCos and managed the implementation of various rights and obligations of the FGN in the company.
“The BPE nominee director on the board of directors of this Company is withdrawn with immediate effect and share certificates of the Company issued in the name of the BPE are to be immediately withdrawn and cancelled,” said Armstrong Takang, CEO, MOFI said in a letter dated January 10 2023.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”.
