13 November 2012

Nigeria: PHCN Privatisation - Reps Fault Zero Allocation to Power Coys in 2013

The House of Representatives yesterday faulted the decision of the President Goodluck Jonathan administration to omit electricity generation and distribution companies from allocation in the 2013 budget.

Chairman, House Committee on Power, Patrick Ikhariale (Edo/PDP) in a briefing with newsmen at the National Assembly complex yesterday, stated that the decision of the federal government could cause a "stopgap" in the provision of electricity to Nigerians in 2013 as well as dent investors confidence in the ongoing sale of the 18 successor companies of the Power Holding Company of Nigeria (PHCN).

The National Council on Privatisation (NCP) is in advance stage of the sale of power plants and distribution companies (Discos). On October 29, NCP announced final winners of the bids for the power plants and distribution companies. In June, the federal government said over N200 billion will be realised from the privatisation of the 18 successor companies created from the unbundling of PHCN. The Bureau for Public Enterprises (BPE) says over N1.2 billion had so far been collected as privatisation proceeds for 2012.

Ikhariale said the call for budgetary allocation and concerns raised by the House Power panel was in reaction to complains and feelers that has been received from stakeholders in the PHCN privatisation process. He called for transparency and due diligence in the privatisation process.

Copyright © 2012 Leadership. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.