Uncertainty surrounds TCN privatisation

The plan by the Federal Government to privatise
the Transmission Company of Nigeria is mired in
uncertainty as there appears to be no road map
yet for the transaction.
Consultations meant to prepare the ground for
the process, our correspondent learnt, were
currently not holding.
Over nine months after the plan to privatise the
transmission segment of the power industry was
made public by the Minister of Power, Prof.
Chinedu Nebo, it was gathered that some
government agencies that would be instrumental
to fast-tracking the process had yet to be
briefed by the Federal Government.
It was further learnt that the National Council
on Privatisation was unaware of the plan to turn
over the transmission backbone to private
sector investors.
The failure to carry the NCP along, our
correspondent learnt, meant that the transaction
advisers for the sale process had not been
appointed as such could not happen without the
council deciding on the sales method.
The Chairman, Technical Committee, NCP, Mr.
Atedo Peterside, told our correspondent in a
telephone interview that he was not aware of
the move to sell the TCN to private investors.
“I don’t know anything about it. If I know, of
course, I will tell you,” he said.
The NCP is the apex body charged with the
responsibility of formulating and approving
policies on privatisation and commercialisation
of public enterprises.
It determines the political, economic and social
objectives of privatisation and
commercialisation of public enterprises, and
approves guidelines and criteria for valuation of
such enterprises for privatisation, and the
choice of strategic investors.
The council also approves the legal and
regulatory framework for the public enterprises
to be privatised, determines the mode of sale of
shares of a listed public enterprise and advises
the Federal Government accordingly.
Responding to enquiries from our
correspondent, a spokesperson for the Bureau
of Public Enterprises, Mr. Alex Okoh, said the
current review of the power sector by the
Federal Government had slowed down the
process of privatising the TCN.
“As you are aware, the government is currently
reviewing the power sector. After the review,
the TCN privatisation process may begin,” he
said.
Nebo had in July last year said the Federal
Government was considering three options for
the privatisation of the TCN.
The options, according to the minister, are full
privatisation, regional privatisation and
concession of the TCN to private investors.
Nebo described as massive the inflow of
potential investors from all over the world into
the country for the proposed privatisation of the
TCN.
The minister, who did not give a tentative date
when the privatisation process would begin, said
the Federal Government was overwhelmed with
the interest shown by investors, but would
outline the process schedule in due course.
In October last year, the President General,
Senior Staff Association of Electricity and Allied
Companies, Mr. Bede Opara, said the power
sector labour unions would move against the
planned privatisation of the TCN by lobbying
members of the National Assembly not to
support such a move.
Some labour chiefs had told our correspondent
then that their opposition to the privatisation of
the company was because the agreement they
reached with the government on the power
sector privatisation did not include the TCN.
The unions also pointed at the poor state of the
privatised power generation and distribution
companies as a justification for their opposition
to the sale of the transmission company.
Opara had said, “We can’t mortgage our
transmission lines to the private sector; more
especially as the Discos and Gencos privatised
almost one year ago are having serious financial
issues. Privatising the TCN is not good for the
country. The private sector has not improved
our generation capacity, or even our distribution
infrastructure.
“We will advise the government to tread with
caution as far as the privatisation of the TCN is
concerned. We will explore all avenues within
our reach to pass our message across.”

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