Nigeria: Fearing Monopoly, Govt Urges Core Investors to Divest Equity in DISCOs

24 July 2018

Abuja — The Bureau of Public Enterprises (BPE) on Monday said the government was scarred of allowing new monopolies to emerge in Nigeria's power sector and expected core investors who own 60 per cent equity in the country's electricity distribution companies (Discos) to divest parts of their shareholdings to new investors to raise capital for their upgrade.

The privatisation agency explained that the government was also not comfortable with the idea of selling parts of its 40 per cent equity in the Discos as frequently requested by their core investors, stating clearly that it would rather hold on to its shares and force the Discos to shed off theirs instead if they wanted to raise equity financing as against debt to upgrade their operations.

...

AllAfrica publishes around 400 reports a day from more than 100 news organizations and over 500 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.