Government, Ministry of Power

FG to Review Power Sector Privatisation, Investors to Cede Shares

Posted: October 15, 2017 at 6:19 am   /   by   /   comments (0)

A new business structure is coming for the power industry. All the voices clamouring for change in the power sector as currently managed can start rejoicing as the Federal Government has disclosed that it is considering a review of the power sector privatisation to make it deliver the expected promise.

The Minister of State for Budget and National Planning, Mrs. Zainab Ahmed, alluded to this government’s new thinking in Abuja during the closing session of the 23rd Nigeria Economic Summit (NES) organised by the Nigeria Economic Summit Group (NESG) in collaboration with the Ministry of Budget and National Planning.

Ahmed stated that the government and other stakeholders had come to the realisation that something critical needed to be done quickly in the power sector. The review of the power sector privatisation, she stated, would have all existing shareholders, both Government and private investors ceding some level of equity to new investors.

Ahmed said: “The power sector privatisation has not worked well, in the sense of what we sought to achieve in terms of power efficiency. We have now come to the point where government which is a stakeholder in the power sector and other stakeholders must come together and decide and cede some of their holdings to new investors that will inject new funding and investors that have the expertise to grow the power sector that will serve Nigerians.”

“It’s a process that is on-going, it involves negotiating with the existing owners and also with the government in deciding the right level of holdings that will go up for another round of sale.

“The privatisation has not worked out. We discovered that many of the companies are indebted to the banks, making it difficult for them to make fresh investments in their infrastructure.

“All stakeholders must come together to grow the sector, especially in discussing with the existing owners.” The minister explained that before any new investment is made in the sector, the contentious issue of tariffs must also be discussed and agreed by all stakeholders in order to attract new investors.

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