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Govt to finalise sale of PHCN firms this month

By on June 6, 2013

THE Federal Government may have concluded plans to finalise the ongoing privatization of the power sector this month, when the Power Holding Company of Nigeria (PHCN) distribution firms are expected to be handed over to their respective investors.

The Commissioner in charge of Government and Consumer of the National Electricity Regulatory Council (NERC), Dr Abba Ibrahim, who disclosed this during the opening of Kano Forum office, on Tuesday, said June was set as the final date for the transactions to come to its final stage.

He revealed that all the prospective buyers of the distribution companies (DISCOs) have already paid up to 25 per cent, the total money agreed for the sale of the companies. According to him, they were all expected to pay the balance at the end of June, 2013.

The Commissioner further explained that, the sales of the companies was aimed at transforming the power sector, which was in line with President Goodluck Jonathan’s transformation agenda, adding that, when the sale of the companies fully took effect, the nation would experience another era of full power across the states of the federation.

“Power sector is in difficult situation as a result of some challenges facing the sector, which caused a short fall in the power supply across the nation”, he disclosed.

However, he assured that power supply would come back to full function again when all grey areas were put in good shape after rectifying the entire process that would also pave way for smooth operations.

Alhaji Muhammad Tunde Balogun, who spoke earlier as the Director/Chief Executive Officer of Kano Electricity Distribution company, disclosed that while the Power Holdings Company of Nigeria (PHCN), had a functional customer care unit, NERC Kano office also had its other functional customer complaint office.

According to him, “Kano customers have since embraced the essential services of the unit and for which we have resolve a number of issues which will have lingered on with negative consequences on the efficiencies of the office.”

He commended the management team of the NERC for their up and doing, that stayed active in the cause of discharging their responsibility. “They are doing very well in terms of safeguarding the interest of customers”, he observed.

It could be recalled by The Guardian that the Governor of Kano state, Engineer Rabi’u Musa Kwankwaso, had in the past blamed the entire process of the sale of Kano state DISCO by the National Council for Privatization, threatening to take the matter to court. Kwankwaso revealed that the state was not invited at the initial stage of the privatization of Kano’s DISCO. Discarding that whatever transpired in the course of that transaction would be addressed at court.

He was reported to have said, “The government and people of Kano state are not in support of the ale of their DISCO. And whoever does that should know and understand that he is dong that just to waste his time.”

For the stand of the Kano state government, the sale of DISCOs is therefore faced with some difficulties, some of which are technical and some other ones could be resolved in courts.

(guardian)