BUSINESS Osinbajo to DisCos: Sell out if Auto dealers grumble you can’t run the business over customs raids
Vice President, Prof. Yomi Osinbajo has told the electricity distribution companies (DISCOs) to invest and run their businesses profitable or sell to those who can, if they are not able to manage them.
The Vice President was responding to a call by Mr. Tony Elumelu, the Chairman Heirs Holding Limited at the ongoing Nigerian Economic Summit Group, NESG that the federal government should reinvest in the DISCOs to become majority stakeholder for a while and later get the people with technical and financial capability to take over.
The Vice President said in reality, if you want to change the ownership structure, some people have to divest but the government right now has no money to reinvest but the DISCOs should look for right investors to divest some of their shares.
“It’s not government that will buy, the government doesn’t have the resources,.. if they can’t run them give them off to those that can run them”
Mr. Elumelu had in his intervention had called for the recapitalization of all the electricity distribution companies (DISCOs) in Nigeria and that government should increase its investments in the DISCOs.
Mr. Elumelu said that if the companies can be recapitalized, they can have enough resources to reinvest more in electricity distribution chain so Nigerian can get better value.
He said fixing electricity will fix almost all Nigerian teething economic challenges.
But Prof. Osinbajo said the federal government doesn’t have the money to reinvest in the distribution companies adding that the owners should look for ways to attract more capital to their businesses. And if they cannot, they should sell out to those with the financial capability.
The FG has some 40 percent equities in the 11 DISCOS while the DISCOs owners have 60 percent equity.
The 23rd Nigerian Economic Summit is jointly organized by the Nigerian Economic Summit Group (NESG) and the Federal Ministry of Budget and National Planning.
ProfessorYemi Osibanjo was participating in the opening plenary of the summit with, Mr. Elumelu and GE Vice Chairman, Mr. John Rice.
The Vice President said the government will be introducing new policies that will ensure power generated is bought by willing buyers to encourage further investments in power generation.
Speaking on the ease of doing business, the Vice President said productivity is what will drive economic growth hence the recent executive orders to improve the ease of doing business environment to drive productivity.
He specifically mentioned the single window clearing policy at the port and streamlining of the bureaucracy at the ports as part of measures to improve the ease of doing business.
He said the government is focused on improving productivity in manufacturing, agriculture and transportation.
On human capital development he said, while the entire education architecture is being overhauled in the long term, government is focused on developing vocational skills in the short term.
He also said the government is committed to making the SMEs work hence the support to the sector through the SMEs clinic and other initiatives. FLIGHT
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