Nigeria Open to Divesting Interests in Local Power Distribution Companies

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Nigeria’s MInister of Power, Works and Housing, Mr Babatunde Fashola has confirmed that the government is open to divesting its interests in local power distribution companies.

In a bid to encourage private participation in the country’s energy sector, the government embarked on a privatization process which resulted in the sale of power generation and distribution assets to private investors. The transmission assets and a 40 percent stake in the 11 distribution companies were, however, retained by the government.

But Fashola has said that the government would look forward to having private investors bring before it good proposals that would convince it to divest part of its shares in the Discos.

He also disclosed that negotiations for the finance of the 3050 megawatts (MW) Mambilla Hydro Power Project would soon kick in following the government’s award of the contract for the $5.72 billion project.
He said: “Certainly, the government wants to see more investments in the sector, you would have heard from the president and from the vice president that our role really is to enable private sector lead our economy.

“So, I would like to see an offer on the table, and you will see how I will respond to it. There is an assumption that there is an investment we are turning aback and if there is one that I am missing, please show me the direction to it.”

He further said to buttress the government’s willingness to have more private sector investments in the power sector, “At the National Council on Privatisation recently, we approved the privatisation of another of the power plants – the Afam Power Plant.

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