In a bid to address corporate governance issues in Distribution Companies (DisCos), the fedral government has concluded plans to increase its representation on the board of the power companies.
In a statement by Head Public Communications Unit, Amina Tukur Othman, the privatization agency said the FGN decided to increase its representation on the Boards by 2 (B Directors) given its 40 per cent shareholding.
According to BPE Director General, Alex A Okoh, “the objective is to ensure transparency in their operations as well as improve their performance.”
In a meeting between the bureau and shareholders of DisCos) on the modalities for increasing federal government’s representation on the boards of their respective discos, DG-BPE stressed that the process has been on for a long while and the delay in implementation by the Discos was not acceptable to the FGN.
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.
The Bureau at the meeting reiterated the purpose of the reform and privatisation in the Nigerian power sector to address efficiency gaps and attract much needed private sector capital and management into the power sector.
The reform was expected to transform the sector to meet Nigeria’s electricity demand.