The Bureau of Public Enterprises (BPE) and shareholders of the electricity Distribution Companies (Discos) have agreed to formalise the increase in the Federal Government’s representation on the Boards of the Discos. At a meeting of the shareholders of the Discos summoned by the BPE, held on June 26, 2019, all the parties agreed that the process would be concluded and implemented on or before July 15, 2019.
The Head Public Communications Unit of the BPE Amina Tukur Othman said in a statement yesterday that part of the requirements for the reform and privatisation in the Nigerian power sector was the entrenchment of a Corporate Governance structure, which provided for the Core Investor to have 6 (six) “A” Directors and the Bureau 1(one) “B” Director. According to the statement, this was done to minimize the representation of the Federal Government of Nigeria (FGN) on the Boards and to grant the Core Investors sufficient control of the management and operations of the Discos.
“In view of the need to strengthen Corporate Governance of the companies, the FGN decided to increase its representation on the Boards by 2 (B Directors) given its 40% shareholding. The objective is to ensure transparency in their operations as well as improve their performance,” Othman said.