Nigeria to sell 70% stake in electricity distribution firms - Nigeria plans to sell a 70 per cent stake in 11 power distribution companies to new investors, as part of the multi-billion dollar privatisation of its electricity sector, local media reported Wednesday, quoting the Bureau of Public Enterprises (BPE).

The 11 distribution companies were created from the unbundling of the Power Holding Company of Nigeria (PHCN).

A statement issued by the BPE, according to the reports, said 10 per cent of the remaining shares would be offered to state governments where the power plants are located, while 18 per cent would be sold through an initial public offering when the companies started operation.

The statement did not disclose how much is expected from the stakes, but said the net proceeds would be transferred to the federation account for distribution to all the tiers of government.

The BPE said in June that it had shortlisted 525 bids for the next round of the privatisation process, adding that successful bidders would be required to pay US$ 20,000 fee for each asset they wanted to buy and sign an exclusivity agreement before going into negotiations.

Pana 21/09/2011