The Federal Government has revoked the Power of Attorney (PoA) for its 40% stake in electricity distribution companies (DisCos) from the Bureau of Public Enterprises (BPE) and handed it over to the Ministry of Finance (MOFI).
Reports revealed that Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, issued an Order on January 10, instructing MOFI’s board of directors to assume ownership, control, and management of all equity holdings in Nigeria’s 11 DisCos.
The directive from Minister Edun emphasizes the need for MOFI to take immediate action, stating, “Assume ownership, control, and management of all equity holdings of the Federal Government of Nigeria, as contemplated and provided for by law and/or any contract. Issue all appropriate notices, instruments, and documents required to give effect to this directive.”
Under the now-repealed Electric Power Sector Reform Act, 2005, BPE held the record of the FG’s equity interests in DisCos. BPE nominated directors and managed various rights and obligations of the Federal Government in the companies.
In response to Minister Edun’s directive, Armstrong Takang, the CEO of MOFI, communicated to the Electricity Successor Companies’ board chairman, stating, “The BPE nominee director on the board is withdrawn with immediate effect. Share certificates issued in the name of BPE are to be immediately withdrawn and cancelled.”
Takang further instructed, “A new share certificate for all outstanding FGN shares should be issued in the name of ‘MINISTRY OF FINANCE INCORPORATED’. DisCos are expected to promptly deliver all relevant documents, including minutes of board meetings, management reports, strategic plans, and financial statements from 2021 to 2023, to MOFI.”
With the expectation that DisCos will swiftly implement these decisions, this move marks a pivotal shift in the management and control of the Federal Government’s shares in the electricity distribution sector.
