[size=13pt]Nigeria to sell 70% of power distribution firms -BPE[/size]

NIGERIA plans to sell a 70 per cent stake in 11 power distribution companies to new investors, as part of the multi-billion dollar privatisation of its electricity sector, the Bureau of Public Enterprises (BPE) said on Tuesday.

A statement issued by the BPE said 10 per cent of the remaining shares would be offered to state governments where power plants were located, while 18 per cent would be sold through an initial public offering when the companies started operation.

The statement did not disclose how much it expected to receive for the stakes, but said the net proceeds would be transferred to the federation account for distribution to all the tiers of government.

The BPE said in June that it had shortlisted 525 bids for the next round of the privatisation process, adding that successful bidders would be required to pay $20,000 fee for each asset they wanted to buy and sign an exclusivity agreement before going into negotiations.

http://www.tribune.com.ng/index.php/news/28508-nigeria-to-sell-70-of-power-distribution-firms-bpe

NA

THEM

SABI

I hope this doesn't turn into a situation like Bolivia where people are not able to afford their electricity and only the rich have it. It also better be constant 24/7 for the whole country then more economic growth can happen.

Anoda rumor that would die and come up by year 2015, By then Nigeria vision would be Vision 2030!!!

When will PLAN change to HAS

This story would make a lot of sense if it read,

Nigeria [b]HAS sold70% of power distribution firms -BPE[/b]

NIGERIA HAS sold 70 per cent stake in 11 power distribution companies to new investors, as part of the multi-billion dollar privatisation of its electricity sector, the Bureau of Public Enterprises (BPE) said on Tuesday.

MORAL:
Even a fool can make plans.

i go like buy wn they start selling,

This is one investment everybody in Nigeria will love to invest in. carry go.

one sweet thing about this jonathan's administration is that they derive a lot of joy celebrating what they will do instead of what they have done.
how can a confused set of ppl in a confused political party rule a confused country?
it is a shame that last year, we were told that by january this year phcn will cease to exist but this is september and NEPA is still much around not to talk of PHCN.
i don't know who else is seeing the cars of NEPA and PHCN at the same time. this is confusion at the highest order.

denitro:

When will PLAN change to HAS

This story would make a lot of sense if it read,

Nigeria [b]HAS sold70% of power distribution firms -BPE[/b]

NIGERIA HAS sold 70 per cent stake in 11 power distribution companies to new investors, as part of the multi-billion dollar privatisation of its electricity sector, the Bureau of Public Enterprises (BPE) said on Tuesday.

MORAL:
Even a fool can make plans.

seconded

igbo2011:

I hope this doesn't turn into a situation like Bolivia where people are not able to afford their electricity and only the rich have it. It also better be constant 24/7 for the whole country then more economic growth can happen.

maybe this will be avoided if we put maximum pressure on those appointed to regulate the prices

igbo2011:

I hope this doesn't turn into a situation like Bolivia where people are not able to afford their electricity and only the rich have it. It also better be constant 24/7 for the whole country then more economic growth can happen.

that is exactly what is going to happen - privatisation means a hike in electricity bills, instead of the govt to pump money into upgrading the existing system they prefer to make a quick buck by sellling it off to the highest bidder - this doesnt bode well for nigerians.

let me show u the cane i bought from the market for u

This is distribution not generating of power! There is nothing so much new about that. There are many countries in the world whose power supplies are privately owned.

If I must choose I would choose this step of privatizing the distribution section than pumping large amount of money in upgrading existing plants, which we have seen not going to work in Nigeria case. There are reason why it is going to be privatized because there attempt to upgrade existing plants which didn't work due to corruption in the sector. And, the distribution of power through out the country is very bad - there are twisted heap of cables on many street junctions, exposed cables, badly placed wooden poles, haphazard connected cables leading to houses, none-restored falling poles, dead transformers in places, ancient meters, wrong estimate of billing, just to mentioned a few. This will forestall these problems if not, they will be the ones going to be held responsible. I think in the whole process the MOUs must have addressed these or else we are going to have another publicity stunt in finding solutions to the power problem.

There's this problem of distribution I would love the new distributors to address, that is, using armor cables for distribution of power supply. It is very effective, most especially, for safety against electrocution during cable cuts and explosions. The transformers too should be covered up in small houses not cages like the present ones.

Hi All,

i read native guys comment, there are mixed feedbacks.
Many of them taking it as +ve while few of them taking as -ve.

doing privatization doesnt always solve problem at times it makes thing worse.
One thing is for sure, when any govt. Privatize its local resource, it loose country's integrity,

Govt. Is saving itself and doesnt taking responsibility to fix current issues by privatising, they are taking a step backward and making citizens life more difficult.
Govt. Will earn great profit and leave citizen pay high bills !!!

Remember these resource are Country's property not the government's
govt. Come and go, they are protectors or to serve the nation not to come and Sell Local Resources !!!

^^^^
I do not agree with you. We are not in the world of communism. There is nothing wrong in privatizing the distribution of power supply. The govt. have not be able to resuscitate this sector upon tens of billions dollars thrown at it. So, the last option is privatization and many countries with stable and efficient electricity are privatized, like Japan, many European countries, etc. Your argument here of the ordinary citizen bearing the cost is not the issue the issue is constant and efficient power supply. We are all sure the cost is going to go up but the demand of the majority of Nigerians is to have stable electricity. It is what happened to the telecommunication sector. You can't just rule out the advantages of the privatization of the sector pointing to high cost. Nigerians have always be paying high bills because they don't know how to economize energy and this will also help in that area. Now, most people will be very careful not to leave their electricity on when leaving for work,etc.

Whether you use the term country or govt differently in referring to electricity provided in Nigeria(it is distribution privatized in this case) what is important is how effective this resource is being utilized to help the country.

fawwad:

Hi All,

i read native guys comment, there are mixed feedbacks.
Many of them taking it as +ve while few of them taking as -ve.

doing privatization doesnt always solve problem at times it makes thing worse.
One thing is for sure, when any govt. Privatize its local resource, it loose country's integrity,

Govt. Is saving itself and doesnt taking responsibility to fix current issues by privatising, they are taking a step backward and making citizens life more difficult.
Govt. Will earn great profit and leave citizen pay high bills !!!

Remember these resource are Country's property not the government's
govt. Come and go, they are protectors or to serve the nation not to come and Sell Local Resources !!!

No forward thinking govt sells off 70% of its assets to foreign private investors - its suicidal - as you correctly stated the country is indirectly handing over its sovereignty to foreigners - you no longer have any say over the running of some of the most vital industries in your own country - this is going to be a repeat of what happened in some latin american countries where their govts sold off all their utilities to foreign investors and the prices of these services went through the roof effectively taking these services out of the reach of the poor, the same thing will happen in nigeria.

@all4naija

Its good to see, people are optimistic in Nigeria I wish you may be true in your analysis and Nigeria may get better result with Privatization.
Let me tell you, why i am against Privatization.
1) Once a Ruling Govt. Privatize its Local Resource like Electricity, Telecommunication, Railways, Airlines etc it looses country's Integrity and Sovereignty
2) Private Group to cut down high budgets, Always do Downsizing. so, people experience layoffs, its True.
3) Govt. only interest is to be on safe end and through all problems on Private sector and earn their share.
Note : the revenue they generate is appear to be invest on local citizens and will be safe in Country's Treasure but mostly it gets distribute among Ministers and allies. (talking in general not specifically about Nigeria)
4) As i mentioned earlier, Local Resource is COUNTRY's Property its not Ruling Govt. property. they are protector of those assets they are not the Owner of those assests !!!


@CAp

yes agreed, you are on same lines as i told.

I hope everything would be good for Nigeria and Nigerians

Back To Square One . . . Very soon

fawwad:

@all4naija

Its good to see, people are optimistic in Nigeria I wish you may be true in your analysis and Nigeria may get better result with Privatization.
Let me tell you, why i am against Privatization.
1) Once a Ruling Govt. Privatize its Local Resource like Electricity, Telecommunication, Railways, Airlines etc it looses country's Integrity and Sovereignty
2) Private Group to cut down high budgets, Always do Downsizing. so, people experience layoffs, its True.
3) Govt. only interest is to be on safe end and through all problems on Private sector and earn their share.
Note : the revenue they generate is appear to be invest on local citizens and will be safe in Country's Treasure but mostly it gets distribute among Ministers and allies. (talking in general not specifically about Nigeria)
4) As i mentioned earlier, Local Resource is COUNTRY's Property its not Ruling Govt. property. they are protector of those assets they are not the Owner of those assests !!!


@CAp

yes agreed, you are on same lines as i told.

I hope everything would be good for Nigeria and Nigerians

I quite understand your argument but it is of no importance when the said property is being used for personal gain by those in authority. It is clear you don't know anything about how things operate in Nigeria. When there is change in the administration the sector there is usually a change of hand in embezzlement . So, we know that is not the nation property in practical term rather the people at the hem of authority own it whenever the are there.

I still support the need of privatizing the distribution sector if possible they can as well privatize the generation of electricity through out the whole nation. We never seen the benefits of power generation and supply in this country since the existence of the sector.