Nigeria to sell 70% of power distribution firms – BPE

21 September 2011, Sweetcrude, Abuja- Nigeria is 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, the Bureau of Public Enterprises (BPE) said on Tuesday.

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

The statement did not say how much it expected to reap from the sales, but stated that 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 $20,000 fee for each asset they wanted to buy and sign an exclusivity agreement before going into negotiations.

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