BPE transfers control of FG’s shares in DisCos to MOFI

The federal government has transferred the control of its 40 percent shareholding in electricity distribution companies (DisCos) from the Bureau of Public Enterprises (BPE) to the Ministry of Finance Incorporated (MOFI).

Following the privatisation of DisCos in 2013, the federal government retained a 40 percent shareholding in the companies.

The development comes a month after the BPE announced its intention to sell the 40 percent shares on the capital market this year.

In a letter dated January 10, 2024, sent to MOFI’s board of directors by Wale Edun, minister of finance, MOFI was directed to assume the ownership and control of interests in entities where the federal government has equity holdings.

“Pursuant to a Power of Attorney granted in 2012, the MOFI, the Donor “as the legal and beneficial holder of FGN interest” appointed the Attorney to be its lawful attorney to transfer its shares in the successor companies to undertake the various actions expressly stated in the said Power of Attorney and do all acts and things in that behalf in order to effectively implement the said decision of the NCP,” the letter reads.

“On 1st day of November, 2013 the powers thereby donated to the Attorney were duly executed and the privatisation by sale of shares in the said successor companies was duly completed by the Attorney.”

Therefore, Edun directed MOFI to revoke and terminate all instruments, agreements, and documents, including a 2012 power of attorney granted to BPE regarding the federal government’s shareholding in successor companies to the Power Holding Company of Nigeria (PHCN).

He also directed MOFI to assume ownership, control, and management of all equity holdings of the federal government, and to issue necessary notices, instruments, and documents, which are required to give effect to the directive.

‘MOFI WITHDRAWS BPE NOMINEE DIRECTOR FROM DISCOS’ BOARD’

In a letter subsequently sent to DisCos, Armstrong Takang, chief executive officer (CEO)of MOFI, notified the companies that the BPE nominee director on their board of directors were withdrawn with immediate effect.

“Share certificates of the Company issued in the name of the BPE are to be immediately withdrawn and cancelled,” the letter reads.

“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.”

Arnstrong also instructed DisCos to promptly deliver all board meeting minutes, operational reports, strategic plans, management accounts, and audited financial statements from 2021 to 2023 to MOFI at a stipulated address.