FG moves to sell 40% stake in discos, four other assets to Nigerians in 2024

The Bureau of Public Enterprises (BPE) has stated that the federal government's remaining 40% stake in electricity distribution companies (Discos) will be put up for sale on the capital market in 2024.

Alex Okoh, the director general of the BPE, said this during a media chat in Abuja on Tuesday, December 12.

In addition, he disclosed the government's plan to sell four other assets, including Eleme Petrochemicals Company Limited, Nigeria Re-Insurance, Nicon Insurance, and Nigeria Machine Tools in Osogbo in 2024.

According to Okoh in a Punch report, the government intends to list its 40% stake in these assets on the stock market as part of its effort to democratise its ownership to more Nigerians and not just a core group of investors.

He noted that the government was working on this to enable Nigerians to buy shares in the Discos.

He said: “So, the capital market, yes, once we resolve the 40% ownership in the Discos. We also plan to take Eleme Petrochemicals to the capital market.

"We had also planned to take Nigerian Re-Insurance and Nicon Insurance to the capital market, of course, but we then started to have some problems with the former core investor, Jimoh Ibrahim.

“So, there are a lot of issues that are involved in taking some of these entities to the market. The Nigerian Machine Tools in Oshogbo is also slated for the capital market."

He claimed that efforts were being made to make privatisation a reality and that the new administration of President Bola Tinubu was more receptive to the concept.

He stated that the Federal Government aimed to produce N298.4 billion through the sale of public assets by 2024.

No plan to swap shares

The BPE DG refuted reports in some sections of the media that the government was planning to exchange some shares of power distribution corporations with state governments. He pointed out that the federal government does not possess all 40% residual government interest in certain Discos.

He clarified that in addition to the federal government and the states owning a portion of it, labour unions are also vying for a part of that 40%.

It cannot therefore, be truly exchanged for a state's stake in the NIPP facilities.

Meanwhile, Legit.ng reported that about 11 DisCos generated N263.08 billion in the second quarter of 2023, an increase of N15.7 billion compared to N247.33 billion in the first three months of 2023.

After raising cost of prepaid meters to N81k, NERC orders DisCos to open customer care centres

Legit.ng also reported that the Nigerian Electricity Regulatory Commission (NERC) mandated electricity distribution companies (Discos) to establish consumer engagement platforms.

The Discos were asked to set up the platform from September 1, 2023. The directive was contained in a document from NERC, with order number: NERC/2023/006, and titled, "Order on deployment of customer engagement platform."