The Ministry of Finance Incorporated (MOFI) has been directed by the Federal Government to take over from the Bureau of Public Enterprises (BPE), its equity holdings in the 11 successor electricity distribution companies (DiSCos) of the defunct Power Holding Company of Nigeria (PHCN).
To ensure this, the MOFI was instructed, in a memo signed by the Chief Executive Officer of MOFI, Dr Amstrong Takang, to the chairman of the Board of the Electricity Successor Companies, to formally terminate the power of attorney granted the BPE to hold the equity of the government and hold on its behalf and ordered the immediate removal of the BPE nominee directors from the boards of the companies.
The affected DisCos are Abuja Electricity Distribution Company PLC; Benin Electricity Distribution Company PLC; Eko Electricity Distribution Company PLC; Enugu Electricity Distribution Company PLC; Ibadan Electricity Distribution Company PLC; Ikeja Electricity Distribution Company PLC; Jos Electricity Distribution Company PLC; Kaduna Electricity Distribution Company PLC; Kano Electricity Distribution Company PLC; Port Harcourt Electricity Distribution Company PLC and Yola Electricity Distribution Company PLC.
Also, Takang instructed immediate withdrawal and cancellation of the share certificates of the companies issued in the name of BPE and new certificates for all outstanding shares of the Federal Government be issued in the name of “Ministry of Finance Incorporated”.
In addition, the memo indicated that details of all activities including minutes of meetings and current management reports including financials dating back to 2021 are to be submitted to MOFI.
The memo reads in part: “By virtue of the statutory mandate in Section 9 of the now repealed Electric Power Sector Reform Act 2005, the Bureau of Public Enterprises (“BPE”) has been the holder of record of the equity interests of the Federal Government of Nigeria (“FGN”) in this company. In this regard, since privatisation of this Company was completed on 1st November 2013, BPE has nominated various persons to be directors in this company and has managed the implementation of the various rights and obligations of the FGN in the company”.
Takang affirmed that the responsibility of the ministry of finance was completed with the successful privatisation of the companies on November 1, 2013.
The MOFI was incorporated under the provisions of Sections 2 and 3 of the Ministry of Finance Incorporated (MOFI) Act of 1959 as an asset holding company with a mandate as the sole manager of all Federal Government investment interests, estates, easement and rights as well as a strategic institution to support the Federal Government’s effort to address several economic challenges and spur the growth of the economy.
The latest directive from Takang was sequel to an earlier directive by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, to the Board of MOFI, instructing it to take immediate steps to revoke the power of attorney granted BPE to allow the agency assert its powers under its enabling Act.
Edun, in a Memo dated January 10, 2024, instructed the board of MOFI to “revoke and terminate any and all instruments, agreements, documents howsoever described, including without limitation to the power of attorney executed sometimes in 2012 whereby MOFI granted and donated powers to BPE in connection with the shareholding of the Federal Government of Nigeria in the successor companies to the Power Holding Company of Nigeria.”
Also, he directed the Board of the MOFI to assume ownership, control and management of all equity holding of the Federal Government of Nigeria in the affected successor companies of the Power Holding Company of Nigeria (PHCN) as well as assume ownership, control and management of all equity holding of the Federal Government of Nigeria as contemplated and provided for by law and/or any contract.
In addition, the minister directed the MOFI’s Board to issue all appropriate notices, instruments, documents that are required to give effect to the directive given by the Minister of Finance and Coordinating Minister for the Economy.
