DG, BPE, Mr. Benjamin Dikki
Ejiofor Alike
Ejiofor Alike
States and communities hosting the 11 distribution companies unbundled from the defunct Power Holding Company of Nigeria (PHCN) will share the remaining 40 per cent stakes in the assets, as part of the efforts to compensate state governments that made huge investments in the electricity distribution infrastructure before the privatisation of the power sector.
The private sector recently acquired 60 per cent stakes in 10 of the 11 distribution companies, leaving the ownership of the remaining 40 per cent stakes in the hands of the federal government.
But the Director General, Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki, told THISDAY that the federal government would allocate part of the remaining 40 per cent stakes to states, host communities and workers in the power sector.
Dikki further stated that the federal government, through the National Council on Privatisation (NCP) had directed the Nigerian Electricity Regulatory Commission (NERC) to value the investments made by each state government in power infrastructure so that they would be given shares in the companies.
“That is why only 60 per cent has been sold to the private investors in the distribution companies. The remaining 40 per cent is still left. Part of that 40 per cent will be used to resolve the investments made by the state governments. Part of it will be used for staff. Part of it is also reserved for host communities. So, as soon as NERC completes evaluation of the assets of each state, evaluation will be done and appropriate shares will be allocated to the state governments to the extent of their investments. The other aspect is now left in the hands of the private sector,” he said.
Dikki further stated that the federal government, through the National Council on Privatisation (NCP) had directed the Nigerian Electricity Regulatory Commission (NERC) to value the investments made by each state government in power infrastructure so that they would be given shares in the companies.
“That is why only 60 per cent has been sold to the private investors in the distribution companies. The remaining 40 per cent is still left. Part of that 40 per cent will be used to resolve the investments made by the state governments. Part of it will be used for staff. Part of it is also reserved for host communities. So, as soon as NERC completes evaluation of the assets of each state, evaluation will be done and appropriate shares will be allocated to the state governments to the extent of their investments. The other aspect is now left in the hands of the private sector,” he said.
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