The Ministry of Finance Incorporated (MOFI) has taken over the federal government 40 equity holdings in the eleven power Distribution Companies from the Bureau of Public Enterprises (BPE).
The federal government had in 2013 privatised the Power Holding Company of Nigeria.
According to a statement signed by Managing Director/CEO of MOFI, Dr Amstrong Takang, it followed a directive by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, to the Board of Directors of MOFI to terminate the Power of Attorney (POA) granted by MOFI to the Bureau of Public Enterprises (BPE) in 2012.
According to Takang, MOFI is to assume ownership, control and management of all outstanding federal government equity in all existing electricity successor companies.
MOFI is a statutory corporation-sole established by the MOFI Act, 1959.
Takang explained that because MOFI could not exercise its powers due to constraints posed by the Act, the power of Attorney had to be given to the BPE to enable it fulfill the legal requirements and complete the various electricity privatisation (share sale) transactions.
“BPE had since then held shares in the Discos on behalf of MOFI. This continued for over 10 years after the sales were completed in 2013, until the recent order by the Minister of Finance, Takang said.
Particularly, the MD said “MOFI would restructured and repositioned as an active asset management corporation; develop a strategy for creating a National Assets Register that aggregates and profiles all national assets and investments; develop and implement policies and regulations that ensure the creation and management of assets from debt-related transactions; develop and implement policies and regulations that ensure creation and management of assets from concession-related transactions; and create a robust pipeline of FG-owned and FG-linked investment opportunities.
“It was further determined that in line with global best practice, MOFI would take on an expanded and more active role, not to directly take over and run the corporate entities created around these FG assets but rather to work with its co-promoters and co shareholders to develop and implement corporate policies and practices that ensure that these assets are operated for maximum value.”
Takang further said that the process of reform and restructuring would lead to consolidation and assumption of the ownership rights of MOFI’s shareholdings across various asset classes.
“This strengthens the FG’s shareholder rights and ensures that entities in which MOFI holds equity stakes fulfil their socio-economic responsibilities and generate substantial financial returns for the FGN.
“MOFI’s resumption of its rights of management of the FG’s 40% shareholding in the eleven electricity distribution companies and the various equity stakes in related energy sector companies is an essential element of this consolidation. It will drive operating efficiency, best corporate governance practices and ultimately maximise the value derived from these electricity assets, in line with alignment with the President’s economic growth agenda.
“MOFI extends its gratitude to the BPE for its stewardship of these shares. As a reformed and active entity, MOFI is taking significant steps to ensure that these assets deliver full value to the country.
“We look forward to collaborating with our key stakeholders and, through our concerted efforts, making a tangible impact in contributing to a thriving, resilient and growing Nigeria,” he further said.
