Anas A. Galadima
14 April 2005
The Bureau of Public Enterprises (BPE), yesterday named the Power Holding Company of Nigeria (PHCN), as the new government incorporated body that will take over all assets and liabilities of the National Electric Power Authority (NEPA), preparatory to the full privatisation of electricity generation and distribution in the country.
Daily Trust had reported on Monday that the BPE may name the new company to replace NEPA this week.
With this development, NEPA has officially ceased to exist, as it is being unbundled into 18 different companies that would be supervised by the PHCN before the full privatisation of the power sector.
Director-General of the BPE, Mrs. Irene Chigbue, who announced the PHCN as successor to NEPA at a media briefing yesterday in Abuja, said the National Council on Privatisation (NCP), will soon fix a date when NEPA's assets and liabilities will officially be transferred to the newly incorporated company.
She said that in line with the provisions of the new Power Sector Reforms Act, the transfer of assets and liabilities of NEPA is suppo-sed to be concluded not later than July 1, 2005.
According to her, for the power sector to attract the much-needed funds that will boost power supply all over the country, the Nigerian Electricity Regulatory Com-mission (NERC), will be es-tablished soon and that a transparent process will be instituted for the recruitment of the highest calibre of staff to work in the NERC.
The BPE boss also spoke on how the agency will go about privatising the nation's four refineries, particularly the new Port Harcourt refi-nery.
In our report on the successor to NEPA published Monday, we quoted a source in the BPE who said the recently signed Power Sector Reforms Act stipulates that the new company, PHCN, must be registered and made functional by September, this year.
The source disclosed further that the BPE was making efforts to work ahead of the September deadline in view of the frustration of Nigerians with the epileptic power supply in the country.
Daily Trust reliably gathe-red that the BPE had to go through the process of incorporating another com-pany before privatising the power sector because the act establishing NEPA says it cannot be privatised.
On the privatisation of the refineries, the BPE DG exp-lained that it was delayed due to shortage of funds.
Mrs. Chigbue explained that the BPE had to approach the president who made sure that funds were made available to the BPE to enable it pay its advisers on the sale of refineries.
She said, initially, the BPE also had the problem of convincing potential investors to bid for the refineries. President Obasanjo had to participate in the process to woo potential buyers who have now begun to send their Expression of Interests (EOIs).
Mrs. Chigbue further disclosed that about 20 public owned companies will be privatised before the end of the year. These include NEPA, Afribank, NAHCO, NICON Hilton, Capital Hotels (Sheraton), and the Federal Airport Authority of Nigeria.
Others include NITEL, Oil Palm companies, Nigerian Ports, Steyr, oil services, ALSCON, Leyland, FSFC, Railways, Volkwagen, Bricks and clays, Paper mills, Abuja International Hotel and Niger Dock.
With regards to companies like Niger Dock and Sheraton, she said the majority shares have been sold. Only about 45 percent is left to be sold and these will be sold to the public either through private placements or through Initial Public Offer (IPO).
Mrs. Chigbue added that the government will ensure that the demarcation of the concessioned ports are concluded so that "by the end of this year, the ports will be in the hands of the private sector."
She explained that the New Nigerian newspapers will be handed over to the Northern state governments any moment from now and that the BPE is making efforts to resolve issues involved in the sale of Daily Times of Nigeria.
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