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FG May Pay ‘Failed Investors’ N736Bn to Repossess Discos
Federal government is considering repossession of 10 electricity distribution firms as one of the options to rescue the nation’s beleaguered electricity industry.
According to the Punch, this is coming ahead of the scheduled final performance review of the private firms that bought into the distribution companies carved out from the defunct Power Holding Company of Nigeria (PHCN).
However, document available to one of our correspondents shows that the Federal Government would require up to $2.4bn (N736bn) to repossess the privatised distribution assets from the core investors if it finally takes the decision.
Giving clue that it could recover the assets from the core investors, the Ministry of Power, Works and Housing in a document sighted by one of our correspondents has described the co-owners of the distribution companies as ‘failed investors.’
The distribution and generation companies carved out of the defunct Power Holding Company of Nigeria were handed over to private investors on November 1, 2013, following the privatisation of the power sector by the President Goodluck Jonathan administration.
The Transmission Company of Nigeria, which is responsible for electricity transmission, is still fully owned and operated by the government.
The PUNCH had on Friday reported that 17 of the nation’s 27 power stations had been forced to shut down some of their units on the back of low demand by Discos, worsening the blackout being experienced by millions of customers across the country.
11 Discos declared technically insolvent
Total power generation dropped to 3,264.4 megawatts as of 6am on Monday, August 12 from 3,580.5MW on Sunday. It stood at 2,842.1MW as of 6am last Thursday.
Five and a half years after privatisation, the 11 Discos have been described as ‘technically insolvent.’
The ministry, in its new ‘Power Sector Policy Directives and Timelines,’ said there was an urgent need to recapitalise the Discos.
It described the inability of the Discos to improve customer service and meet operational costs as a direct consequence of their inability to raise capital.
The Bureau of Public Enterprises (BPE) said in October 2018 that the five-year performance agreement with the core investors in the Discos, with the exception of Kaduna Disco, became effective on January 1, 2015 and the fifth anniversary for final performance review would therefore be December 31, 2019.
The ministry said the Discos’ accumulated debts to the Nigeria Bulk Electricity Trading Plc and the Market Operator had made them technically insolvent.
On the option of repossessing the distribution assets, it said, “To do so within the provisions of the Share Sale Agreement will require a sum in the region of $2.4bn, some of which will be paid as compensation to the failed investors. This is not a desirable outcome. It is noteworthy that government is yet to pay the investor in Yola Disco for its negotiated return to government.”
On July 2015, the Federal Government took over Yola Electricity Distribution Company following the exit of the core investor after it declared a force majeure, citing insecurity in the North-East geopolitical zone of the country.
While highlighting the reasons for the inability of the Discos to raise the capital required, the ministry said new lenders would require additional equity injection.
“But any new equity investor would require clarity about how the accumulated debts would be treated, and what support, possibly in the form of subsidy, regulatory assets and or higher tariff, would be available to manage new operating shortfalls during a transition period,” it added.
Review power sale but don’t politicise exercise —ECAN
Mr Chijioke James, president, Electricity Consumers Association of Nigeria (ECAN), told Punch correspondent in a telephone interview that there was a need to revive the power sector.
He said, “It is a welcome development that by December, there will be a review to know how the core investors who took over the power assets have performed. It is based on that feedback mechanism that the government can make an informed decision, which should not be political because the power sector is a very strategic sector for the economy of our country.
“Therefore, in taking any decision, they should have the overall national interest at heart, and not make the same mistakes made in the past. We will love to see a situation where things are done based on merit.
“The Discos that are doing well should be supported and encouraged to do more; those who have failed should be shown the way out.”
Cancelling Discos sale’ll come with contigent liability —TCN MD
Although Mr Usman Mohammed, managing director of TCN, had consistently called for recapitalisation of the distribution companies, he said that cancelling the sale of the Discos was not in the best interest of the nation.
Mohammed had stressed the need for the recapitalisation of the Discos, saying the transmission company would support any initiative aimed at expanding the distribution network.
He said in an interview, “If you implemented right things wrongly, you should right the wrong instead of cancelling it. Because when you cancel it, you get it wrong completely. What we need is to correct it, and recapitalisation can correct it.
“If we cancel the privatisation, we are going to have a contingent liability and we will send a signal to the whole world that Nigeria is not private sector-friendly.
“Secondly, does government have sustainable money to invest in the power sector? No. When you cancel, you will return the money of the investors and you are going to pay them 20 per cent for five years.”
Speaking at the opening of the 23rd Nigeria Economic Summit in Abuja on October 10, 2017, the Chairman of Heirs Holding, Mr Tony Elemelu, had asked the government to dilute the shares of the private investors in the power companies.
Elumelu, a major shareholder in Transcorp Power Consortium, advised the government to invest more in the privatised power firms to wrest them from current operators.
Subsequently, he said, the government could give the Discos to investors who have the resource to run the distribution companies.
Although the government acknowledged at a point that it was considering this option, no concrete action had been seen along this line.
In March, the National Leader of the All Progressives Congress, Bola Tinubu, called on the Federal Government to revisit the privatisation of the sector.
He accused the People’s Democratic Party administration of sharing out the power assets to friends and cronies without very deep and thoughtful research and evaluation.
Acting on behalf of the Federal Government, the BPE had in its power sector reform programme overseen the sale of 15 power companies — 10 distribution companies and five generation companies — in 2013.
While $1.26bn was realised from the sale of the 10 distribution companies, $1.06bn was realised from the sale of the five generation companies.
The successful opening of financial bids for 15 successor companies towards the end of 2012 opened the gates for the financial inflows into the country in terms of privatisation proceeds.
For Abuja Distribution Company, Kann Consortium emerged as the preferred bidder; for Benin Disco, Vigeo Power Consortium and for Eko Disco, West Power and Gas.
For Enugu Disco, Interstate Electrics Limited emerged while for Ibadan Disco, Integrated Energy Distribution and Marketing Limited had emerged.
EDC/KEPCO Consortium emerged the preferred bidder for Ikeja Disco; Aura Energy Limited for Jos Disco; Sahelian Power Limited for Kano Disco; 4Power Consortium for Port Harcourt Disco; while Integrated Energy Distribution and Marketing Limited emerged for Yola Disco.
For the power generation companies, North-South Power Limited emerged for Shiroro Hydro Power Plc; Mainstream Energy Solutions emerged for Kainji Hydro Power Plc.
CMEC/EURAFRIC Energy Limited emerged for Sapele Power Plc; Amperion Power Distribution Limited emerged for Geregu Power Plc; while the Transcorp Consortium emerged for Ughelli Power Plc:
Two consortia also later emerged preferred bidders for the last of the two successor electricity companies from the Power Holding Company of Nigeria — Afam Power Plc and Kaduna Electricity Distribution Company.
With a bid of $260.05m, Taleveras beat TES Power to emerge the preferred bidder for Afam Power Plc, the last of the generating companies carved out from the defunct PHCN.
Similarly, Northwest Power Limited emerged the preferred bidder for Kaduna Electricity Distribution Company, the only remaining of the 11 distribution companies carved out from PHCN.
However, the sale of Afam to Televeras later felled apart.
The Federal Government has received a major boost in its drive to strengthen teacher education and digital learning, as the Government of Japan, through the UNESCO International Institute for Capacity Building in Africa (IICBA), donated ICT equipment and learning materials to 15 teacher training institutions across Nigeria.
Speaking at the official handover ceremony held at the Federal Ministry of Education in Abuja, the Minister of State for Education, Prof. Suwaiba Said Ahmad, described the intervention as a significant contribution to the country’s efforts to improve teacher quality, digital literacy and inclusive education.
She said the donation forms part of a regional initiative launched in 2024 by UNESCO-IICBA, the Government of Japan and the African Union to strengthen teacher training and promote continuous access to safe, quality education for girls in West Africa.
According to the minister, the project, which covers Nigeria, Burkina Faso, Cameroon, Chad, Mali and Mauritania, aligns with the Federal Ministry of Education’s priorities under the Renewed Hope Agenda, particularly in the areas of equity, quality education, digital transformation and inclusion.
“Teachers remain the backbone of every education system. No education reform can succeed without well-trained, motivated and digitally empowered teachers,” Ahmad said, noting that the equipment would modernise teacher training institutions and improve access to digital learning resources.
The beneficiaries comprise 15 federal and state colleges of education spread across Nigeria’s six geo-political zones, including the Federal College of Education, Kontagora; Federal College of Education, Zaria; Federal College of Education (Technical), Gombe; Federal College of Education, Yola; Federal College of Education (Technical), Asaba; Federal College of Education (Special), Oyo.
Others are Federal College of Education (Technical), Umunze; College of Education, Zuba, FCT; Isaac Jasper Boro College of Education; Enugu State College of Education (Technical); Sa’adatu Rimi College of Education, Kano; Adamu Augie College of Education, Argungu; Shehu Shagari College of Education, Sokoto; Adamawa State College of Education, Hong and Taraba State College of Education, Zing.
The donated items include 65 laptop computers, 71 tablets, four desktop computers, five interactive smart boards, 19 all-in-one desktop computers, 14 projectors, 15 printers and 15 backup hard drives.
Ahmad said the facilities would enhance both pre-service and in-service teacher training by promoting innovation, digital competence and learner-centred teaching approaches, while preparing educators for the demands of a technology-driven world.
The event also featured a national consultation on school safety and infrastructure security, with participants discussing strategies for creating safer and more inclusive learning environments.
The minister stressed that safe schools remain critical to achieving quality education, particularly for girls and other vulnerable learners, adding that the ministry would continue to prioritise policies and programmes aimed at strengthening school security.
She further highlighted the ministry’s focus on Technical and Vocational Education and Training (TVET), Science, Technology, Engineering and Mathematics (STEM), girl-child education, quality assurance, data management and digital transformation as key pillars for improving educational outcomes nationwide.
Ahmad also disclosed plans to implement new interventions aimed at empowering female teachers and school leaders in crisis situations through mobile-based learning platforms, as well as programmes designed to integrate out-of-school children into formal education.
She commended UNESCO-IICBA, the Government of Japan, the African Union and other development partners for supporting teacher education in Nigeria and urged beneficiary institutions to utilise the equipment responsibly to improve learning outcomes and build a more resilient education system.
“The equipment will enhance digital literacy among our pre-service teachers and boost the attainment of education goals in Nigeria,” she said.
In their separate remarks, the Director of the UNESCO International Institute for Capacity Building in Africa (IICBA), Dr. Quentin Wodon, and the Chargé d’Affaires of the Embassy of Japan in Nigeria, Hitoshi Kozaki, reaffirmed their commitment to supporting efforts aimed at improving teacher education and expanding access to quality learning opportunities across Nigeria and the West African region.
They noted that the donation of ICT equipment to the beneficiary colleges of education reflects the shared commitment of UNESCO, the Government of Japan and their partners to strengthening the capacity of teacher training institutions, particularly in the area of digital learning.
According to them, equipping teachers with modern technological skills is critical to improving learning outcomes and ensuring that education systems are responsive to the demands of the 21st century.
African electric vehicle (EV) platform Spiro has raised $215 million in equity to scale electric mobility and energy infrastructure across the continent.
The funding is backed by institutional investors including Impact Fund Denmark and Equitane.
The investment will accelerate the expansion of Spiro’s battery-swapping network, industrial footprint and next-generation EV infrastructure across high-growth African markets, the company said.
This funding comes as economies in the region aim to reduce dependence on imported fuel, reinforce energy and industrial sovereignty, and modernise urban transport systems.
Driven by rising fuel costs, growing demand for affordable transportation and increasing policy support for clean energy, investors are backing scalable EV platforms poised to support Africa’s next phase of urban and industrial growth.
Building on support from long-standing institutional partners such as the Fund for Export Development in Africa, Spiro’s latest equity round draws capital from Europe and Africa, reflecting growing global confidence in scalable infrastructure-led business models in emerging markets.
With operations in seven African countries—Kenya, Rwanda, Uganda, Togo, Benin, Nigeria and Cameroon—and plans to expand local production and enter new markets such as the Democratic Republic of Congo and Ethiopia, Spiro is building one of Africa’s most advanced EV and battery-swapping ecosystems.
Its industrial footprint includes manufacturing plants in Kenya, Rwanda and Uganda, alongside a battery recycling facility in Nigeria.
“This past year marked a defining strategic milestone for Spiro. Across seven active markets, our deployment of 100,000 electric vehicles and 2,500 smart-swap stations has made sustainable mobility an affordable, everyday reality,” said Gagan Gupta, founder of Spiro and chairman of Equitane.
“Spiro has become a major driver of local industrialisation, value creation and manufacturing across African markets, providing 6,000 sustainable direct and indirect jobs. Supported by our global investors, we are entering our next growth chapter to deliver clean, cost-effective energy and transport alternatives to millions of riders across the continent.”
Lars Bo Bertram, CEO of Impact Fund Denmark, added: “We are investing in Spiro and bringing Danish pension capital into one of Africa’s most promising growth markets because we see potential for significant commercial growth in Spiro and electric mobility across Africa, as well as measurable climate impact. That is exactly the type of investment we want to make.”
Federal Government on Tuesday distributed Information and Communication Technology (ICT) equipment and materials to 15 federal and state colleges of education across the country to strengthen teacher training, promote digital literacy and improve access to quality education.
Prof. Suwaiba Ahmad, Minister of State for Education
The intervention was facilitated through support from the Government of Japan and the United Nations Educational, Scientific and Cultural Organisation International Institute for Capacity Building in Africa (UNESCO-IICBA) under the project titled, “Capacity-building of Teachers to Promote Continuous and Inclusive Access to Safe and Quality Education for Girls in West Africa.”
Speaking at the handover ceremony in Abuja, the Minister of State for Education, Prof. Suwaiba Ahmad, described the initiative as a significant contribution to Nigeria’s education sector and one that aligns with the ministry’s strategic priorities.
Ahmad commended UNESCO-IICBA, the Government of Japan and the African Union for launching the regional project in March 2024, saying it reflected a shared commitment to strengthening teacher preparation systems and expanding educational opportunities, particularly for girls.
According to her, the project, which covers Burkina Faso, Cameroon, Chad, Mali, Mauritania and Nigeria, is in line with the Federal Ministry of Education’s priorities under the Renewed Hope Agenda.
“Teachers remain the backbone of every education system. No education reform can succeed without well-trained, motivated and digitally empowered teachers,” she said.
The minister said the ICT resources would enhance both pre-service and in-service teacher training through improved access to digital learning content, innovative teaching methods and learner-centred instructional approaches.
She noted that the beneficiary institutions include Federal College of Education, Kontagora; Federal College of Education, Zaria; Federal College of Education (Technical), Gombe; Federal College of Education, Yola; Federal College of Education (Technical), Asaba; Federal College of Education (Special), Oyo; Federal College of Education (Technical), Umunze; College of Education, Zuba; Isaac Jasper Boro College of Education; Enugu State College of Education (Technical); Sa’adatu Rimi College of Education, Kano; Adamu Augie College of Education, Argungu; Shehu Shagari College of Education, Sokoto; Adamawa State College of Education, Hong; and Taraba State College of Education, Zing.
According to Ahmad, the equipment distributed includes 65 laptop computers, 71 tablets, four desktop computers, five interactive smart boards, 19 all-in-one desktop computers, 14 projectors, 15 printers and 15 backup hard drives.
She added that the event also provided an opportunity to discuss school safety and infrastructure security.
“Safe schools are essential to achieving quality education, especially for girls and vulnerable learners.
“We must continue to ensure that our institutions remain secure, supportive and conducive spaces for teaching and learning,” she said.
The minister reiterated the government’s commitment to Technical and Vocational Education and Training (TVET), Science, Technology, Engineering and Mathematics (STEM), out-of-school children education, girl-child education, quality assurance and digital transformation.
She also disclosed plans for additional interventions aimed at empowering female teachers and school leaders through mobile-based learning platforms and integrating out-of-school children into formal education.
Speaking at the event, Mr Hitoshi Kozaki, Chargé d’Affaires of the Embassy of Japan, reaffirmed his country’s commitment to supporting educational development in Nigeria.
“I want to thank Nigeria for the collaboration that we have had for many years. I really hope that this project makes a difference for the future and the institutions represented here,” he said.
Kozaki said Japan’s partnership with African countries was built on mutual respect and local ownership, stressing that development efforts should be driven by the priorities of beneficiary nations.
He urged the institutions to make effective use of the ICT resources to improve teacher preparation and expand learning opportunities, especially for girls.
Also speaking, the Director of UNESCO-IICBA, Quentin Wodon, commended Nigeria’s commitment to education reforms and active participation in international education programmes.
Wodon stressed the importance of promoting female leadership in schools, noting that studies had shown positive learning outcomes when women occupied leadership positions.
“If there was one thing I would love Nigeria to do, it would be to see whether we could launch some kind of programme to encourage more women to become school leaders. It is really important,” he said.
He added that teachers in Nigeria remained critical to efforts aimed at improving learning outcomes and advancing inclusive education across Africa.
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