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Nigerian Government Plans to Repossess Electricity Distribution Assets From Investors

Aug 15, 2019 02:39 PM
Nigerian Government Plans to Repossess Electricity Distribution Assets From Investors Africa Business Radio, Africa Business News, Investor, Nigeria, Electricity, Lagos


In a bid to revamp the country’s power sector, the Federal Government (FG) is considering repossessing no fewer than 10 electricity distribution firms. The acquisition, if successful, will cost the Federal Government about N736 billion. There are indications that the Federal Government could reacquire the distribution assets from core investors, as the Ministry of Power, Works and Housing, in a document, described the co-owners of the distribution companies in Nigeria as ‘failed investors.’ While considering this option, the ministry said. To do so within the provisions of the Share Sale Agreement will require a sum in the region of $2.4 billion (736 billion), some of which will be paid as compensation to the failed investors. This is not a desirable outcome. It is noteworthy that the government is yet to pay the investor in Yola DisCo for its negotiated return to government.


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