on Electric Power Department
The Electric Power Department is directly responsible
for the implementation of the reform and privatization of the Nigerian electric
power sector. The privatization strategies include core investor sale, asset
sale, concession and management contract. The department’s remit also include
the management of resulting labour challenges and some aspects of post-privatization
The Electric Power Department served as the Secretariat
of the Electric Power Implementation Committee (EPIC)—a Steering Committee of
the National Council on Privatisation (NCP) which created the Electric Power
Policy document that was approved by Federal Executive Council (FEC) in 2001.
It also managed the process that led to the enactment of
the Electric Power Sector Reform Act 2005 (EPSRA) and drove the implementation
of EPSRA through the establishment of Nigerian Electricity Regulatory
Commission (NERC), Nigerian Electricity Liability Management Company (NELMCO),
Nigerian Bulk Electricity Trading (NBET), Rural Electrification Agency (REA),
National Power Training Institute of Nigeria (NAPTIN) and Nigerian Electricity
Management Services Agency (NEMSA).
The department managed the process that led to the
establishment of the Power Holding Company of Nigeria (PHCN) in May 2005 as a
holding company for the assets and liabilities of the defunct vertically
integrated National Electric Power Authority (NEPA).
The process for the creation of six Generation companies
(GenCos), one Transmission company and 11 Distribution companies (DisCos) from
PHCN in November 2005 was also managed by the department.
The department midwifed the privatisation of the
successor companies as it conducted road-shows in Lagos, Dubai, London, New
York and Johannesburg between December 2010 and January 2011, before the
submission of Expression of Interest (EOI) by investors. The Bureau received
331 Expressions of Interest for the GenCos and DisCos on March 4, 2011—25 bids
for GenCos on July 17, 2012 and 54 bids for DisCos on July 31, 2012.
The process for the financial bids opening for nine
approved GenCo bidders that was conducted on September 12, 2013 and for 31
approved DisCo bidders conducted on October 29, 2012 led to the handover of the
privatized successor companies to investors on November 1, 2013.
department, in conjunction with the Bureau’s Labour unit and other
stakeholders, is in the process of resolving labour issues, which is a key
component of the privatization programme. It managed the negotiations with the
unions over a period of 14 months that birthed an agreement that was signed on
December 12, 2012. The department has managed the process of PHCN staff
verification and payment and so far 46,771(98%) of the total staff strength of
PHCN of 47,913 have been paid their severance and pension entitlements. Also, 2,953(68%)
of the 4,318 retired staff/beneficiaries have been paid via a process managed
by the department.
department is working with internal and external stakeholders in order to
implement the Federal Government Power Sector Recovery Plan which was approved
by the Federal Executive Council (FEC) in March 2017.
objective of the plan is to resolve the challenges that are facing the DisCos,
GenCos and the Transmission Company of Nigeria (TCN) and the rest of the sector
so that they can deliver on their mandates.
in The Department
The eleven enterprises have
been privatised. Following the security challenges in the North-east, Yola
Distribution Company was returned to the Federal Government and is being
managed by an employee of the Federal Ministry of Power, Works and Housing.
Abuja Distribution Company;
Benin Distribution Company;
Eko Distribution Company;
Enugu Distribution Company;
Ibadan Distribution Company;
Yola Distribution Company;
Ikeja Distribution Company;
Jos Distribution Company;
Kano Distribution Company;
Port Harcourt Distribution Company; and
Kaduna Distribution Company
The seven enterprises have been privatised. However,
Afam Power Plc transaction has not been concluded and the Bureau is in the
process of re-starting the privatisation of the enterprise.
Afam Power Plc;
Ughelli Power Plc;
Geregu Power Plc;
Kainji Power Plc;
Shiroro Hydro Power Plc;
Sapele Power Plc; and
Egbin Power Plc.
Transmission Company of Nigeria (TCN).
Hydro International Nigeria Limited (MHINL) was engaged as management
contractor for the Transmission Company of Nigeria (TCN). The contract was executed
on July 23, 2012 for a period of three years, renewable for another two years. However,
the management contract was renewed for one year and ended on July 31, 2016.