The Ministry of Finance Incorporated (MOFI) has officially taken charge of the federal government’s equity holdings in 11 successor Electricity Distribution Companies (DisCos). This decision follows the directive issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to terminate the Power of Attorney previously granted to the Bureau of Public Enterprises (BPE) in the electricity successor companies.
In a statement released on Monday, Dr. Armstrong Takang, the Managing Director/Chief Executive Officer of MOFI, announced that the directors of MOFI are now vested with ownership, control, and management of the outstanding federal government’s equity in the existing electricity successor companies.
MOFI, established as a statutory corporation by the MOFI Act, 1959, holds assets acquired from the federal government’s funds, including investments in the defunct National Electric Power Authority. This entity evolved into the Power Holding Company of Nigeria Plc under the repealed Electric Power Sector Reform Act, 2005 (EPSRA), subsequently unbundled into various electricity successor companies, including the eleven distribution companies (Discos).
The recent order by the Minister of Finance terminates the longstanding arrangement wherein BPE held shares in the Discos on behalf of MOFI. This shift in control aligns with MOFI’s strategic direction post-reform.
In the past 24 months, especially since the amendment of the MOFI Act by the Finance Act, 2023, MOFI has undergone substantial reform, transitioning from a unit in the Office of the Accountant-General to a comprehensive public sector (FGN) asset management corporation.
In its revitalised role, Dr. Takang emphasized that MOFI would work towards establishing and confirming state ownership, professionalizing state ownership, and strategic resource mobilization and investment. This approach aims to enhance operational efficiencies, implement best corporate governance practices, and maximize the value derived from electricity assets.
The resumption of MOFI’s management rights over FG’s 40% shareholding in the eleven electricity distribution companies and other equity stakes signifies a pivotal step in consolidating and optimizing the management of these crucial assets. The move aligns with President Bola Ahmed Tinubu’s economic growth agenda, positioning MOFI for an active role in shaping the future of Nigeria’s energy sector. The Ministry thanked the BPE for its past stewardship of these shares.
