Nigerian Govt To Review Power Sector Privatisation | The Precision

The Nigerian government on Thursday says it would
soon review the privatisation of power plants in the country to enable
government restructure their ownership and capacity to deliver value to
the people.


President Muhammadu Buhari said at the closing of the 23rd Nigerian
Economic Summit, NES in Abuja that the review would involve the
restructuring of the ownership of the power plants to ensure that owners
who do not demonstrate sufficient capacity to operate the facilities
cede their stakes to new investors.
The President, who was represented by the Minister of State for
Budget and National Planning, Zainab Ahmed, said this was to open up the
sector for new investors to bring in fresh capital to make the plants
more functional.
He said negotiations would commence with power generation companies,
DISCOs where the country is having the most difficulties in ensuring
adequate power supply. 
At the opening session of the summit, the Vice President, Yemi
Osinbajo, had rejected a proposal by one of the operators who urged the
federal government to inject more money in the power plants sold to
private investors.
Mr. Osinbajo said rather than give fresh funding, current owners of
those companies who have no capacity to finance their operations should
transfer their equity to fresh investors to help realize that objective.
The Chairman, Transcorp Ughelli Power Limited, Tony Elumelu, had
urged the federal government to reconsider refinancing the electricity
distribution companies, DISCos by acquiring fresh shares of the firms.
Mr. Elumelu had said injecting fresh capital would check the current
situation where operators of these power plants were holding the
government to ransom with endless demands.
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