BANKS GET MARCHING ORDER TO SELL-OFF DISCOS SHARES

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DAMI. L

A 12-month deadline to sell their majority stakes in six electricity distribution companies has been given to banks.

Abubakar Aliyu, the Minister of Power, announced the “PMB Administration Scorecard Series (2015-2023)” at the 11th edition.

According to him, the banks have been ordered to find reputable investors who will purchase their 60% equity in the DisCos in Abuja, Kano, Kaduna, Benin, Ibadan, and Port Harcourt.

He stated at the Federal Ministry of Information and Culture’s news conference that the government had fired the previous core investors to make them more accountable and that it was committed to helping the DisCos succeed.

According to him, restructuring of the six Discos included the sacking of the previous core investors due to poor performance and the composition of a new board and management to run them.

Aliyu said: “For the benefit of the doubt, when I say we have restructured the DisCos, this is just saying it mildly.

“Restructuring means that we have sacked the core investors.

“We have sacked the management and allowed the lenders to take over.

“Either banks or the Asset Management Corporation of Nigeria hold the franchise.

“So the banks have taken over 60 per cent ownership.

“We have allowed the banks, the Bureau of Public Enterprises and the Central Bank of Nigeria to take control.

“The lenders provided the chairmanship of the DisCos.

“The BPE provided part of the management, including the Managing Directors, and then the CBN provided the Chief Financial Officer and the Auditor.

“So this is the position we are now with the six DisCos.

“They are Abuja, Kano, Kaduna, Benin, Ibadan and Port Harcourt.

“One may ask: Why only six?

“How about the rest? You know we have 11 of them, and three of them are doing well. They are doing well with two in Lagos and one in Enugu.”