ADVERTISEMENT
  • The Membership Club
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Tuesday, March 2, 2021
Premium Times Nigeria
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
NCP endorses states, distribution firms

NCP endorses states, distribution firms

February 29, 2012
2 min read
ADVERTISEMENT

State governments keen on providing their citizens with improved access to electricity can now enter an agreement with any of the power distribution firms on sharing the capital investments required to rehabilitate and expand electricity distribution network in their domains.

The National Council on Privatisation (NCP), which gave the approval at its first meeting for 2012 in Abuja, said the capital contribution would have to be secured and repaid on terms mutually agreed with the distribution company.

“In accordance with the Independent Electricity Distribution Network (IEDN) regulation to be enacted by the Nigerian Electricity Regulatory Commission (NERC), a state that desires to build independent electricity distribution networks within areas of its State not currently served within each distribution franchise area could do so. This would be subject to such a State being licensed to do so by Nigeria Electricity Regulatory Commission (NERC) without unnecessary delay,” the NCP said.

According to the NCP, though the acquired assets would become the property of the distribution company, it would be utilised wholly within the state for the benefit of its citizens, while the state would be entitled to compensation so far as it conforms to the tariff methodology approved by the NERC.

Similarly, all excess capital costs are to be shouldered by the state government while the distribution companies would not pay any interest on any investment undertaken by the state.

Other decisions taken during the meeting presided over by Vice President, Namadi Sambo, include that the percentage equity that state governments can hold in a distribution company would be determined through an independent valuation by an agency jointly appointed by the state governments in conjunction with NERC of actual investments in the distribution network.

Given the economic un-viability of re-delineating the distribution companies along state boundaries, the NCP approved that the present privatisation framework of 11 distribution companies created from the unbundling of the Power Holding Company of Nigeria (PHCN) should be maintained.

“60 per cent of the shares of a distribution company should be sold to core investors to allow state governments participate in the bidding consortia, while limiting the overall federal and state government shares to 49 per cent,” the NCP said, adding that federal and state governments would not play any role in the management of the privatised successor companies.

The privatization agency also limits workers’ allotment to a maximum of 2 per cent of the overall shares, or 10 per cent of the federal government shares in each distribution company, while shareholders’ agreements signed between the governments and core investors in each distribution company must clearly provide for automatic reduction of any government equity if it fails to meet its payment obligations.

RelatedNews

JUST IN: Emir of Kagara is dead

COVID-19: 2,636 active cases under Lagos home-based care – Official

VIDEO: Nigeria receives 3.94 million doses of COVID-19 vaccines

La Liga Round-Up: Real Madrid lose pace as Atletico consolidate first place

States may also provide counter-guarantees to the distribution companies to cover shortfalls in payments due from the distribution companies for energy supplied to customers within the territorial boundaries of the respective States. 

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: To advertise here . Call Willie +2347088095401...


JOIN THE CONVERSATION

  • Disqus (0)
premiumtimes



PT Mag Campaign AD

Previous Post

Bauchi Christian bombers moved to Abuja

Next Post

Economy to gain N281billion from indigenous vessel charter operation

More News

MTNN to pay shareholders N120bn final dividend after record turnover

MTNN to pay shareholders N120bn final dividend after record turnover

March 2, 2021
Okonjo-Iweala assumes office as WTO director-general. [PHOTO CREDIT: WTO Twitter handle]

First Day: New WTO chief, Okonjo-Iweala pushes for fisheries deal

March 2, 2021
Naira Notes

Naira gains on I&E window

March 1, 2021
MTN Office

MTN Nigeria posts record turnover as pandemic drives data sales

March 1, 2021
Custodian Investment

Custodian Investment profit balloons 111% as firm declares N2.6 bn dividend

March 1, 2021
Nestlé Nigeria Plc

Nestlé shareholders fund falls 36% as firm plans to pay dividend from retained earnings

March 1, 2021
Next Post
Economy to gain N281billion from indigenous vessel charter operation

Economy to gain N281billion from indigenous vessel charter operation

Police guards flee as robbers storm Babcock University

Police guards flee as robbers storm Babcock University

Discussion about this post

Search

#EndSARS: Latest Updates




Polaris Bank


JAIZ Ad


NITDA Ad





Glo Ad

Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,627,485 other subscribers.

Advertisement






netherland biz school Advert

Zenith Advert
ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • Opinion
  • PT Hausa
  • The Membership Club
  • Dubawa
    • Dubawa NG
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
  • Digital Store
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.