FG to increase representation in power firms’ boards

The federal government says it will add two members to its representatives on the boards of the 11 electricity distribution companies (DisCos).

In a statement in Abuja on Monday, Amina Othman, head of public communication of the Bureau for Public Enterprise (BPE), said the decision resulted from a meeting held with the shareholders of the DisCos.

The federal government holds a 40% stake in the DisCos with one member in the board of the power firms.

The BPE stated all parties agreed to the proposal to strengthen the corporate governance of the companies.

The agency said the meeting focused on the purpose of the power sector privatisation and reform in order to address efficiency gaps and attract capital and management into the industry.

“This reform was expected to transform the sector to meet the country’s electricity demand,” she said.

“Part of the requirements for the aforementioned reform was the entrenchment of a Corporate Governance structure, which provided for the Core Investor to have 6 (six) “A” Directors and the Bureau 1(one) “B” Director.

“This was done to minimize the representation of the FGN on the Boards and to grant the Core Investors sufficient control of the management and operations of the Discos.

“In view of the need to strengthen Corporate Governance of the companies, the FGN decided to increase its representation on the Boards by 2 (B Directors) given its 40% shareholding.

“The objective is to ensure transparency in their operations as well as improve their performance.”