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FG Withdraws Power Of Attorney For 40% Shares In Discos From BPE

January 14, 2024
2 Min Read
FG Withdraws Power Of Attorney For 40% Shares In Discos From BPE

FG Withdraws Power Of Attorney For 40% Shares In Discos From BPE

The federal government has reassigned the Power of Attorney (PoA) for its 40% shareholding in electricity distribution companies (DisCos) from the Bureau of Public Enterprises (BPE) to the Ministry of Finance (MOFI).

According to a document viewed by LEADERSHIP, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, issued an Order, dated January 10, directing the board of directors of MOFI to take over ownership, control, and management of all equity holdings of the Federal Government in Nigeria’s 11 DisCos.

Edun also instructed MOFI to “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; and issue all appropriate notices, instruments, and documents which are required to give effect to this directive.”

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Recall that under the statutory mandate in Section 9 of the now-repealed Electric Power Sector Reform Act, 2005, BPE was the holder of record of the equity interests of the FG in DisCos. BPE nominated various persons to be directors in DisCos and managed the implementation of the various rights and obligations of the FGN in the company.

Acting on Minister Edun’s directive, Armstrong Takang, the CEO of MOFI, in a letter to the chairman of the board of directors of the Electricity Successor Companies, stated, “The BPE nominee director on the board of directors of this Company is withdrawn with immediate effect, and share certificates of the Company issued in the name of the BPE are to be immediately withdrawn and cancelled.”

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He added, “A new share certificate for all outstanding shares of the FGN in the Company is to be issued in the name of ‘MINISTRY OF FINANCE INCORPORATED’. All minutes of Board meetings, current management operational reports, extant strategic business and operating plans, management accounts, and audited financial statements going back to the 2021, 2022, and 2023 financial years should be immediately delivered to MOFI.”

Takang said he expects DisCos to “Immediately take on board and implement these decisions”.