News
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.
Oladipupo Adebutu, Peoples Democratic Party (PDP) governorship candidate in Ogun State, has alleged that all state governors in Nigeria are benefiting from and misappropriating local government allocations.
Oladipupo Adebutu
Adebutu made the remarks at the Ake Palace in Abeokuta during a meeting with the Egba Traditional Council, where he sought the support and blessings of traditional rulers for his governorship ambition.
He was accompanied by his running mate, Lateefat Sowunmi-Kolapo; the PDP senatorial candidate for Ogun Central, Iyabo Obasanjo; the Ogun State PDP Chairman, Abayomi Tella; and other party leaders and candidates.
Addressing the traditional rulers, Adebutu declared that granting full financial autonomy to local governments would be one of the defining policies of his administration.
“I will do something that will stun this nation and put us in the right direction. Local governments shall get their own money,” he said.
He added: “We must make sure we get local government autonomy. I have been reiterating to you that I, Oladipupo Olatunde, son of Adebutu, was at the National Assembly twice, and I can boast that I didn’t embezzle public funds. How many politicians can say this?”
Adebutu accused governors across party lines of diverting local government funds.
“It’s not a party thing. Both APC and PDP, all the governors are embezzling local government allocations. It’s not a secret,” he said.
He argued that local councils were able to deliver more development when they had greater control over their finances.
On infrastructure financing, Adebutu said governments must adopt new approaches rather than relying on borrowing.
“You don’t borrow money for infrastructure anymore,” he said, while promising to construct roads that would improve connectivity between Ogun State and Lagos.
In his remarks, Abayomi Tella, State Chairman of the PDP, lamented that the local government system in the state is in a state of collapse, recalling that as a former council chairman, he received N200 million as an allocation and used it to construct four roads within his local government.
He expressed concern that the current local government chairmen cannot point to any project of similar impact, attributing the situation to a lack of financial autonomy.
The PDP chairman said he strongly believes in Adebutu’s advocacy for local government autonomy, stressing that Adebutu is prepared and ready to lead the development of Ogun State.
Sowunmi-Kolapo, deputy governorship candidate, called on her kinsmen to support her political aspiration, noting that she has continued to support the development of Egbaland.
Also speaking, Iyabo Obasanjo, PDP candidate for Ogun Central Senatorial District, said that after leaving the APC following her unsuccessful governorship bid, she came to believe that Adebutu has the vision and political will to actualise her aspirations and manifesto for the people.
Obasanjo further noted that no political party has a more formidable team in Egbaland than the PDP, urging Egba monarchs to throw their weight behind the party in the interest of the people.
In his welcome address, the Alake and Paramount Ruler of Egbaland, Oba Adedotun Aremu Gbadebo, described Adebutu as “trustworthy and reliable,” declaring his support for the party’s flag bearer ahead of the 2027 governorship election.
The Alake recalled his long-standing relationship with Adebutu’s father and expressed confidence in Adebutu’s character and leadership qualities.
“The son of a lion must resemble the lion. In fact, he is an even better version of his father,” Oba Gbadebo said.
Federal high court in Abuja has ordered the final forfeiture of N941,994,079.86 linked to suspected ghost workers uncovered in the integrated payroll and personnel information system (IPPIS) to the federal government.
IPPIS is a centralised payroll system the federal government introduced to manage the salaries of federal public sector employees.
Binta Nyako, presiding judge, gave the order following an application filed by the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
“That an Order is hereby made for the Final Forfeiture to the Federal Republic of Nigeria the Sum of N941,994,079.86 seized during investigation into the IPPIS Payroll scam in the year 2024,” Nyako ruled.
Okor Odey, ICPC spokesperson, announced the forfeiture in a statement issued at the weekend.
The ICPC spokesperson said investigations by the commission uncovered “large-scale payroll fraud involving hundreds of non-existent public servants, with a total sum of N941,994,079.86 traced to accounts linked to the scheme”.
Odey said a review of the IPPIS conducted in 2023 revealed the “existence of numerous “ghost workers” embedded within the payrolls of several Ministries, Departments and Agencies (MDAs)”.
According to him, following the findings, President Bola Tinubu approved a “comprehensive audit” of the IPPIS.
He added that a joint investigation between the ICPC and the office of the accountant-general of the federation in April 2025 led to the discovery of 587 suspected ghost workers on the IPPIS platform.
“Investigations revealed that fictitious IPPIS identities had been created for non-existent personnel across multiple MDAs, with salaries paid over extended periods into accounts belonging to individuals and companies,” Odey said.
“In many cases, the account names did not correspond with those of the purported employees, while some accounts received multiple salary payments simultaneously.”
The ICPC spokesperson said the agency placed post no debit (PND) restrictions on all identified accounts to freeze the funds suspected to be proceeds of fraud.
He said the affected MDAs include the Nigeria Police Force (NPF), federal ministries of defence, education, agriculture and rural development, works, water resources, and interior.
Others are National Board for Arabic and Islamic Studies, University of Benin, University of Calabar, University of Nigeria, Nsukka, University of Maiduguri, Ahmadu Bello University, Zaria, and the office of the accountant-general of the federation.
The ICPC spokesperson said 120 civil servants were cleared after their identities and employment status were confirmed following a verification exercise in 2025.
He added that 467 bank accounts remain linked to unverified individuals with holders yet to be identified.
He noted that the N941.9 million currently frozen in the 467 bank accounts has been forfeited to the federal government.
He disclosed that the agency published the names of the 910 individuals suspected to have benefited from the purported fraud in two national dailies on March 18, 2026.
The Nigerian Maritime Administration and Safety Agency (NIMASA) has introduced the Blue Economy Accelerator Programme, a strategic initiative designed to identify, nurture, and accelerate innovative startups that will contribute to the sustainable growth of Nigeria’s marine and blue economy.
The Blue Economy Accelerator Programme is aimed at attracting young, vibrant minds with innovative ideas capable of transforming Nigeria’s maritime ecosystem.
Dr. Dayo Mobereola, Director-General of NIMASA, said that through the initiative, participants will receive structured business development support, industry mentorship, and technical guidance to convert promising concepts into viable ventures that address critical challenges and opportunities within the blue economy.
“The programme reflects NIMASA’s commitment to supporting the implementation of the vision of the Federal Ministry of Marine and Blue Economy in unlocking the immense potential of the blue economy by empowering young innovators, entrepreneurs, and technology-driven enterprises. We at NIMASA want to provide a platform for investors to identify young talents and invest in them”.
Mobereola, who commended the Minister of Marine and Blue Economy, Adegboyega Oyetola for codifying the Marine and Blue Economy Policy as a clear roadmap for the sector’s development, urged young Nigerians to embrace the programme which has the potential to transform raw talents into big investments in the maritime sector.
Applications are open to startups and innovators developing solutions across several strategic sectors, including marine waste management and the blue circular economy; aquaculture and sustainable fisheries; maritime technology and logistics innovation; ocean energy including wave, tidal, and offshore renewable energy; marine tourism and coastal recreation; marine biotechnology such as, ocean data and analytics; green shipping, including vessel decarbonization; smart port solutions; autonomous marine vehicles; biofouling prevention technologies; and coastal resilience through nature-based coastal defencesolutions.
The first phase of the programme is expected to attract a minimum of 150 high-quality applications from within and outside the country provided they are Nigerian citizens.
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