Faces Behind Privatized Electricity Industry (I)

1 Comment » March 17th, 2014 posted by // Categories: Energy Development Project



 

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Faces Behind Privatised Electricity Industry (I)

— March 18, 2014

Following the physical handover of power facilities after unbundling the public power utility, the Power Holding Company of Nigeria (PHCN), major players in the Nigerian economy have emerged core owners of the Generation and Distribution Companies (GenCos and DisCos).

Nigeria’s power transmission business renamed Transmission Company of Nigeria is now managed by Manitoba Hydro International while the power generation and distribution companies were privatised by the federal government. LEADERSHIP analysis has indicated that the power sector has become one business area that has attracted Northern businessmen as shown by their high number among the faces behind the privatised electricity industry controlled by some of Nigeria’s richest men.

 

Power Transmission

Transmission Company of Nigeria- Manitoba Hydro

Mr Ibrahim Waziri is the Board Chairman of the Transmission Company of Nigeria (TCN) which was inaugurated in January by the federal government. Manitoba Hydro International (a Canadian based company) was awarded the contract to manage TCN – one of the successor PHCN companies after an exhaustive bidding process conducted by the Bureau of Public Enterprises (BPE).

Manitoba is expected to transform TCN into a technically and financially efficient company during their three year contract during which they are mandated to develop the proficiency of TCN staff through training and capacity building programmes. Under the management of Manitoba, TCN is expected to effectively and reliably wheel power generated by generation companies, to load centres.

Waziri who holds a Bachelor of Science degree in Accounting from the Ahmadu Bello University (ABU) Zaria and an MBA from the University of Lagos is expected to bring his managerial expertise to bear on the board of TCN.

Currently a non-executive director of First Bank, Waziri was a Managing Partner of Gulf of Guinea Petroleum Consulting Limited, a Nigeria-based consulting firm which offers professional expertise to diverse clients and interests in Nigeria.

He also served as member of the federal government technical committee on expenditure review that advised the government on enhancing value of overhead expenditure and reducing waste in government spending. Between 2003 and 2009, Waziri was also the Group Executive Director, Corporate Services at the Nigerian National Petroleum Corporation (NNPC). He has also served as Director Bonny Gas Transport Limited, Deputy Managing Director Nigeria LNG Limited, Executive Director at the Nigeria Gas Company Limited and the Pipeline and Product Marketing Company (PPMC).

 

Kainji, Jebba Power Plants- Col. Sanni Bello

Col. Sani Bello is the chairman of Mainstream Energy Solutions Limited (MESL) whose company bought into the Kainji Hydro Electric Plant and Jebba Hydro Station assets after paying $170 million. The Kainji and Jebba power stations both owned by Kainji Hydro Electric Plc was part funded by a medium term syndicated acquisition facility. The syndication was funded by Guaranty Trust Bank (GTB) and Africa Finance Corporation (AFC).

Col. Sani Bello (rtd) was a former military administrator of Kano state has been involved with various companies as chairman or director, including Former Broadbank Nigeria Ltd, Globe Re Nigeria Ltd, Law Union and Rock Insurance Company Plc, Amni International Petroleum Development Company Ltd, Dantata and Sawoe Construction Company Ltd, MTN Communications Ltd, Equatel Communication Ltd, President of National Association of Indigenous Petroleum Explorers in Nigeria. Mainstream energy is the highest electricity generating company in Nigeria. He is also a farmer and Proprietor of Mustafa Comprehensive School, Kontagora.

The consortium of companies which have equity interests in MESL include; Allstream Energy Solutions, Amni International Petroleum Development Company, Anchorage Holdings Limited, Bullet International, Conexel Nigeria Limited, Confluence Cable Network (“CCN”) and Crust Energy.

MESL also has a technical partner in the form of Russian company, RusHydro Group which has significant hydro power experience across Russia and several bi-lateral relationships in Asia and Europe. MESL has restated that its focus is to sustain the current capacity and meet the five-year target of 1500 MW as contained in the terms of concession for Jebba and Kainji hydro companies. It recently added another unit to the Jebba hydro station, increasing the plant’s capacity from 380 MW to 450 MW.

 

Abuja Electricity Distribution Company- Alhaji Shehu Malami

KANN Utility Consortium Company Limited has the full control of Abuja Electricity Distribution Company which it bought at the cost of $164 million. The consortium is chaired by Alhaji Shehu Malami. Standard Bank of South Africa (SBSA) acted as the financial advisors to Copperbelt Energy Corporation (CEC) Plc with respect to its acquisition of 60 percent shareholding in Abuja Electricity Distribution Company vide Kann Utility Consortium Company Limited.

 

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One Response to “Faces Behind Privatized Electricity Industry (I)”

  1. Dayo. says:

    The tariff rate(16.44) and the fixed charge(650.00) on domestic consumption is killing.I am suggesting that it should be reduced. If the distribution companies needs more money/profit, let them improve on their services. They should stop exploiting the few customers at their disposal. Those in charge of electricity distribution in the house of rep., and senate needs to take note of this and take action.

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