FG targets power sector reform as 91 govt-owned companies up for sale
Story by Susan Mbamah
The Federal Government has announced it will privatise 91 public enterprises, including two electricity distribution companies (DisCos) and one power generation company (GenCo), as part of a renewed push to boost the economy, generate revenue, and create jobs.
During a media briefing in Abuja, Mr. Ayodeji A. Gbeleyi, the Director General of the Bureau of Public Enterprises (BPE), revealed that the privatisation effort is aimed at “ensuring optimal performance and repositioning key sectors of the economy.”
Power Sector Reform and Roadblocks
Among the companies slated for sale, two DisCos and one GenCo have been earmarked for Initial Public Offerings (IPOs) on the Nigerian Stock Exchange. Citing “transaction confidentiality” and a desire to “avoid causing anxiety or concern, whether among labour, workers, or the wider society,” Gbeleyi did not disclose their identities.
He acknowledged that Nigeria’s electricity supply industry continues to face significant challenges. While 23 power plants are connected to the national grid, as many as five are often out of operation at any given time due to issues like gas shortages, vandalism, transmission limitations, and liquidity crises.
Gbeleyi also stated that plans to privatize five other GenCos have been put on hold due to volatility in the foreign exchange market. “When the transaction started in 2021, the official exchange rate was around ₦450. By last year, it was averaging ₦1,600, and today it stands at about ₦1,575. The fundamentals of the transaction changed along the line, but government is still keeping an eye on it,” he explained.
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He expressed disappointment that GenCos have not fully embraced the Eligible Customer Regulation, pointing to weak transmission infrastructure as a major setback. “If you produce power in Zungeru and need to sell it in Egbin, there must be transmission capability to deliver that power. Without the infrastructure, eligible customers cannot benefit,” he stressed.
Key Reforms and Progress
Gbeleyi highlighted several reforms under the current administration, including the restructuring of seven DisCos while core investors in four others have remained. He also noted that the unbundling of the Transmission Company of Nigeria (TCN) led to the creation of the Nigerian Independent System Operator (NISO) to promote efficiency and market independence.
On the metering front, the BPE DG reported significant progress, with 6.47 million meters installed as of March 31, 2025, a vast increase from just 403,255 in 2013. Of these, 3.2 million were deployed under the Distribution Sector Recovery Program (DISREP), and 2.5 million came from the Presidential Metering Initiative.
While the BPE has not yet disclosed the criteria for prospective shareholders, Gbeleyi emphasised that the privatization program will be transparent and carefully managed to avoid market disruption.
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“The essence of this exercise is to reposition the enterprises for efficiency, create jobs, and strengthen the economy. The government cannot do it all; the private sector must play its role,” he concluded.
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