Nigeria Privatizes State Run Electrical Generation

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Eighteen new companies will be created when the Nigerian government sells its chronically inefficient electricity monopoly, the National Electric Power Authority (NEPA). The World Bank and the International Monetary Fund are assisting the privatization process, which will be overseen by the state's bureau of public enterprises.

Six electricity generating companies, one transmission firm and eleven power distribution companies will be created from NEPA and will be monitored by Nigeria's proposed electricity regulatory commission which will be set up by a bill now before parliament. The commission's brief is to create, promote and maintain an efficient industry, and ensure the optimal utilization of resources.

The bureau is looking to complete the privatization by the end of the year and has begun screening six short-listed consortiums that have applied to advise NEPA on reform and privatization. These include Schroder Salomon Smith Barney (Citigroup)(NYSE:C)(New York, USA), JP Morgan (NYSE:JPM) (New York, USA) and Credit Swiss First Boston (NYSE:DIR) (New York, USA).

Some sections of staff are urging government to postpone privatization for five years and the National Union of Electricity Employees is urging that rural electrification be given priority before privatization. The bureau of public enterprises has assured all parties that selling NEPA will not see the transformation of a public sector monopoly into a private sector monopoly. A large body of public opinion is behind privatization as the means towards preventing frequent power outages in the country and the fast-track development of the country's power infrastrucure.