The Ministry of Finance Incorporated (MOFI) has formally terminated the power of attorney granted the Bureau of Public Enterprises (BPE) to hold on its behalf the Federal Government equity holdings in the eleven successor electricity distribution companies (DISCos) of the defunct Power Holding Company of Nigeria (PHCN) and directed their restoration to MOFI.
The DISCos included Abuja Electricity Distribution Company PLC; Benin Electricity Distribution Company PLC; Eko Electricity Distribution Company PLC; Enugu Electricity Distribution Company PLC; Ibadan Electricity Distribution Company PLC; Ikeja Electricity Distribution Company PLC; Jos Electricity Distribution Company PLC; Kaduna Electricity Distribution Company PLC; Kano Electricity Distribution Company PLC; Port Harcourt Electricity Distribution Company PLC and Yola Electricity Distribution Company PLC.
The revocation notice was contained in a memo to the Chairman of the Board of the Electricity Successor Companies by the Managing Director and Chief Executive Officer of MOFI, Dr Amstrong Takang, to the Chairman of the Board of Directors of the Electricity Successor Companies conveyed the immediate removal of the BPE nominee directors to the boards of the companies.
Taking also instructed immediate withdrawal and cancellation of the share certificates of the companies issued in the name of BPE and new certificates for all outstanding shares of the Federal Government be issued in the name of “MINISTRY OF FINANCE INCORPORATED”. Details of all activities including minutes of meetings and current management reports including financials dating back to 2021 are to be submitted to MOFI.
“By virtue of the statutory mandate in section 9 of the now repealed Electric Power Sector Reform Act 2005, the Bureau of Public Enterprises (“BPE”) has been the holder of record of the equity interests of the Federal Government of Nigeria (“FGN”) in this company. In this regard, since privatization of this Company was completed on 1st November 2013, BPE has nominated various persons to be directors in this company and has managed the implementation of the various rights and obligations of the FGN in the company”, Armstrong wrote and affirmed the responsibility of the ministry of finance was completed with the successful privatization of the companies on 1st November 2013.
The Ministry of Finance Incorporated MOFI was incorporated under the provisions of Sections 2 and 3 of the Ministry of Finance Incorporated (MOFI) Act of 1959 as an asset holding company with a mandate as the sole manager of all federal government investment interests, estates, easement and rights as well as a strategic institution to support the Federal Government’s effort to address several economic challenges and spur a renewal of the economy. It has about 130 Government Owned Entities and linked companies in its portfolio.
The directive follows an earlier directive by the Minister of Finance and Coordinating Minister of the Economy Wale Edun to the Board of MOFI, instructing it to take immediate steps to revoke the power of attorney granted BPE to allow the agency assert its powers under its enabling Act.
Mr Edun in a communication dated 10th January 2024 instructed the board of MOFI to “revoke and terminate any and all instruments, agreements, documents howsoever described, including without limitation to the power of attorney executed sometimes in 2012 whereby MOFI granted and donated powers to BPE in connection with the shareholding of the Federal Government of Nigeria in the successor companies to the Power Holding Company of Nigeria”.
The minister also instructed MOFI to assume ownership, control and management of all equity holding of the Federal Government of Nigeria in the said successor companies of the Power Holding Company of Nigeria as well as assume ownership, control and management of all equity holding of the Federal Government of Nigeria as contemplated and provided for by law and/or any contract.
MOFI was also instructed to issue all appropriate notices, instruments, documents which are required to give effect to the directive by minister Wale Edun.
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