Companies To Take Over Power Distribution

The Bureau of Public Enterprises (BPE) will soon hand over the distribution companies to core investors that met the capital requirement.
The companies include: Abuja Electricity Distribution company plc, Benin Electricity Distribution Company Plc and Eko Electricity Distribution Company Plc.
Others are: Enugu Electricity Distribution Company Plc, Ibadan Electricity Distribution Company Plc, Ikeja Electricity Distribution Company, Jos Electricity Distribution Company Plc, Kano Electricity Distribution Company Plc and Yola Electricity Distribution Company Plc.
The Head of Media, Ministry of Power, Mr Timothy Oyedeji, said the payment of the 100 per cent capital requirement by the bidders was mandatory to ensure the successful privatization of the power sector.
The government, he said, was waiting for the successful bidding distribution and power generation firms to meet the 100 per cent capital rigime.
He said: “Though the companies have paid 25 per cent of the capital outlay, they  are required to pay the remaining 75 per cent in line with the directives of BPE. When they pay the outstanding, the companies would be handed over to the bidders in the next couple of months.”
The BPE had announced the receipt of $335 million from the bidders for the generation and distribution firms last November.
This followed a due diligence process conducted on the distribution and generation power firms.
The process included clearing the preffered bidders for the Power Holding Company of Nigeria (PHCN) generation and distribution firms, ensuring that they have the capacity to do the job.
Others are decision of the government to reach an agreement with the Nigeria Labour Congress (NLC) to guarantee the cooperation of workers in the handing over process, and raising finance to pay the entitlements of the workers exiting PHCN.