BPE pushes for efficiency with increased FG representation on Discos’ board
To address efficiency gaps in the nation’s power sector as well as aid reforms are implemented, the Federal Government, will this month, increase its representation on the boards of electricity distribution companies.
Indeed, the Bureau of Public Enterprises (BPE) noted that activities to formalise the move latest by july 15,had been outlined for implementation.
Presenting the outcome of a meeting of the shareholders of the Discos, which held last week, in a statement, the BPE reiterated the purpose of the reform and privatisation in the Nigerian power sector to address efficiency gaps and attract much needed private sector capital and management into the power sector.
According to the BPE, the reform was expected to transform the sector to meet the country’s electricity demand.”Part of the requirements for the aforementioned reform was the entrenchment of a Corporate Governance structure, which provided for the Core Investor to have 6 (six) “A” Directors and the Bureau 1(one) “B” Director.
“This was done to minimize the representation of the FGN on the boards and to grant the core investors sufficient control of the management and operations of the Discos.”In view of the need to strengthen Corporate Governance of the companies, the FGN decided to increase its representation on the boards by 2 (B Directors) given its 40 per cent, shareholding. The objective is to ensure transparency in their operations as well as improve their performance” BPE states.
The DG-BPE, Alex Okoh stressed the point that this process has been on for a long while and the delay in implementation by the Discos was not acceptable to the federal government. Subsequently, the BPE noted that all parties agreed to the proposal as it was in good faith to strengthen Corporate Governance of the companies.
“It was agreed that all the activities outlined during the discussions which would formalise the increase in the FGN’s representation on the Boards of the Discos would be concluded and implemented on or before the July, 15”, the statement read.
No comments yet