THE Ministry of Finance Incorporated (MOFI) has officially restructured and taken control of the government’s 40 per cent equity holding in the 11 privatised successor electricity distribution companies (DISCos).
The MOFI is the investment vehicle of the Nigerian government domiciled with the Federal Ministry of Finance.
Before now, the Bureau of Public Enterprise (BPE) has maintained such control of the government’s 40 per cent shares in the 11 Discos.
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The announcement of the official takeover of the ownership, control, and management of government equity and assets in all the DISCOs was contained in a statement on Monday, January 15, signed by the Managing Director/Chief Executive of MOFI, Amstrong Takang.
He disclosed that MOFI was also taking significant steps to ensure these assets delivered full value to the country while looking forward to collaborating with key stakeholders towards making a tangible impact in contributing to a thriving, resilient, and growing Nigeria.
According to Takang, the termination of the power of attorney to BPE was a sequel to formal authorisation by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
He also disclosed that the authorisation by the Minister also gave the Board of MOFI power to immediately assume ownership, control, and management of all outstanding Federal Government of Nigeria (FGN) equity in all existing electricity successor companies in the Nigerian Electricity Supply Industry(NESI).
To clarify further, Takang said MOFI, as a statutory corporate entity solely established by the MOFI Act, 1959, has the mandate as the holder and manager of all assets acquired by way of debt or equity capital from the funds of the FGN.
He said these assets included investments in the defunct National Electric Power Authority (NEPA), which transformed into the Power Holding Company of Nigeria (PHCN)
He pointed out that these assets included investments in the defunct National Electric Power Authority (NEPA), which transformed into the Power Holding Company of Nigeria (PHCN).
Following the repeal of the Electric Power Sector Reform Act, 2005 (EPSRA), he noted that PHCN was subsequently unbundled into the 11 electricity “successor electricity distribution companies (Discos), namely included Abuja Electricity Distribution Company PLC; Benin Electricity Distribution Company PLC; Eko Electricity Distribution Company PLC; Enugu Electricity Distribution Company PLC; Ibadan Electricity Distribution Company PLC; Ikeja Electricity Distribution Company PLC; Jos Electricity Distribution Company PLC; Kaduna Electricity Distribution Company PLC; Kano Electricity Distribution Company PLC; Port Harcourt Electricity Distribution Company PLC and Yola Electricity Distribution Company PLC.
He clarified further that BPE, after playing that holder role on behalf of MOFI for over 10 years after the completion of the share sales in the DISCOs in 2013 and following the amendment of the MOFI Act by the Finance Act, 2023, it became necessary for MOFI to resume its responsibility, having been reformed and restructured from a Unit in the Office of the Accountant-General of the Federation to a full-fledged public sector asset management corporation.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.