- The House of Representatives has mandated its Committee on Privatisation to probe the activities of the Bureau of Public Enterprises (BPE)
- The lawmakers said the Committee should probe the purchase of two power plants in Nigeria
- A lawmaker from Kano told the lawmakers that the sale of the plants was not completed as planned
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The House of Representatives has asked its Committee on Privatisation and Commercialisation to probe the Bureau of Public Enterprises (BPE) activities from 2019 to May 2023 and report back in four weeks.
Hassan Shehu Hussain (NNPP, Kano) presented during the plenary on Tuesday, October 31, 2023.
Credit: Vithun Khamsong
Source: Getty Images
FG privatizes 80 companies in four years
Hussain noted that about 80 public companies were privatized via various models, including core investors, concessions, asset sales, and Initial Public Offers (IPOs) from the commencement of Nigeria’s privatization and commercialization of publicly-owned enterprises in 2000.
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Specifically, Hussain said that during the period under review, BPE privatized 29% of the remaining federal government’s shares in the Geregu Power Plant to core investors to upgrade it to a combined cycle for a total of N13,1 billion.
According to the lawmaker, BPE should have checked if the investors upgraded the shares to the additional 20% balance of the companies for Public Offers to Nigerians on the floor of the Nigerian Stock Exchange.
“The Geregu Power Plant may never be upgraded to a combined cycle by the investors since BPE has removed the public enterprises from post-privatization monitoring, Hussain said.
Reps probe power plant commissioned by Osinbajo
For Afam Power Plant, Hussain noted that the balance of N78 billion for Afam Three Fast Plant remains outstanding despite the parties signing an agreement for a Share Purchase Agreement in 2020, noting that more than 25% of the purchase consideration was paid.
Daily Trust reports that the Kano lawmaker said the remaining balance was supposed to be paid upon commissioning of the Afam Three Power, which ex-Vice President Yemi Osinbajo did before he left office.
He rued the decline by the Federal Ministry of Justice to decline the signing of the Zungeru Power Plant Concession fees because there was no approval by the Federal Executive Council (FEC).
Otedola’s Geregu Power Plant sells millions of Shares
In May 2023, Billionaire Businessman Femi Otedola’s Geregu Power listed 2.8 million units of shares on the floor of the Nigerian Exchange.
Legit.ng reported that the sale was completed on Monday and Tuesday, May 8 and 9, 2023, and was disclosed in a corporate filing released on the Nigerian Exchange (NGX).
The decision to sell comes 13 days after securing a mouth-watering deal with fellow Billionaire Tony Elumelu.
Legit.ng had reported that Otedola exited from Transnational Corporation Plc a few days after he surpassed Tony Elumelu to become the majority shareholder.
A breakdown from the corporate filing shows that Otedola sold a tranche of 1,875,000 units of Geregu shares at N288.9 and another 948,092 units at the rate of N290.7.
Otedola’s brother buys top shares
Meanwhile, Punch reports that Femi Otedola’s brother, Paul Otedola, has increased his shares in Geregu Power by acquiring 300,000 units at N288.9 per share, worth N86.67 million.
Paul had previously purchased 3.6 million units of shares at N219 per unit and 100,000 shares at N207.9 per unit in February 2023, totaling N809.2 million.
Similarly, Otedola’s other brother, Ayokunle Michael, bought four million company shares at N219 per unit for N876 million on February 2.
Otedola’s Geregu power earmarks N40bn to buy FG’s power plant; 15 other firms are also interested
Legit.ng reported that the federal government and states want to sell off five National Integrated Power Projects (NIPPs) and hope to raise about N260 billion.
Bureau of Public Enterprises (BPE) has shortlisted 16 companies bidding to acquire the power generation companies
Bureau of Public Enterprises (BPE) has shortlisted 16 companies bidding to acquire the power generation companies
Source: Legit.ng
