The Federal Government is set to offer two key power firms, Yola Electricity Distribution Company and Afam Power PLC, for sale to new core investors, investigation has shown.
For the Yola Disco, this will be the second time the government will be selling the firm which covers Borno, Adamawa, Yobe and Taraba States.
It was also learnt that the first core investor in the Yola Disco, Integrated Energy Distribution and Marketing Company, had yet to be paid back the $146.8million it invested for 51 per cent stake in the firm about three years after it exited through the declaration of force majeure.
The Head of Public Communications, Burea of Public Enterprise, Amina Othman, confirmed that both the Yola Disco and Afam Power PLC were up for sale to new core investors in an interview with journalists, Punch reports.
According to her, the privatisation agency is in the process of obtaining approval from the National Council on Privatisation for the appointment of transaction advisers who will be responsible for offering advisory services towards the sale of the electricity companies.
She said, “We are at the stage of obtaining approval for the engagement of advisers for both transactions (Yola Disco and Afam Power Plc).
“On the payment to the former investor in the Yola Disco, Integrated Energy and Distribution Marketing Company, the former investor is yet to be paid.”
Following difficulty in running the Yola Disco due to activities of the terrorist group, Boko Haram, Integrated Energy and Distribution Marketing Company had asked the government to buy back its 51 per cent stake in the firm.
The former core investor had on six occasions (November 10, 2013, August 27, 2014, October 15, 2014, April 9, 2015, April 30, 2015 and May 13, 2015) given notices of force majeure to the government.
