The federal government and the 11 electricity distribution companies (Discos) may be on collision course over the plan by the Federal Ministry of Power, Works and Housing to inaugurate and appoint two non-executive directors for each of the 11 Discos.
It was gathered that the planned inauguration, which the Discos have described as illegal, was supposed to have taken place, on Monday, at the Transmission Company of Nigeria (TCN) building, in Abuja, but the event was abruptly cancelled at the venue and suspended indefinitely.
It was gathered that chief executive officer of one of the Discos said on Monday on condition of anonymity that the planned inauguration was an act of illegality and not consistent with extant regulations, Thisday reports.
He said the Companies and Allied Matters Act (CAMA) was the principal statute regulating companies in Nigeria, adding that, “While we note that the Bureau of Public Enterprise (BPE) and MOFI (Ministry of Finance) are shareholders of the company, they may not unilaterally appoint new directors.”
He also stated that the planned appointment of non-executive directors by the federal government runs afoul the Shareholders Agreement (SHA) between BPE, Ministry of Finance, investors and Discos.
