BPE to list 2 Discos, one Genco on stock exchange

…eyes ₦312bn revenue for 2025 amid reform push

In a bold move aimed at deepening investor participation in Nigeria’s power sector, the Bureau of Public Enterprises (BPE) is, for the first time, considering listing two electricity distribution companies (discos) and one generation company (genco) on the Nigerian Exchange (NGX).

This disclosure was made Tuesday in Abuja by Ayodeji Gbeleyi, Director General of the BPE, during his first official media briefing since assuming office mid last year. The listing, he said, would involve the federal and state governments’ residual 40% and 30% stakes in the respective power firms.

While declining to name the companies due to what he described as the “sensitivity of the matter,” the BPE chief noted that the move would allow Nigerians participate in the ownership of critical power infrastructure, while helping to strengthen corporate governance and transparency in the sector.

“We intend to drive shared prosperity and inclusiveness by listing part of the FGN/States’ 40%/30% residual shares in certain Discos and a Genco on the stock exchange,” Gbeleyi said, noting that the decision marks a shift toward market-driven ownership and corporate governance reforms.

The initiative is part of the Bureau’s broader strategy to support President Tinubu’s Renewed Hope Agenda — focused on unlocking value from public assets, driving private investment, and accelerating job creation. Gbeleyi said the Bureau is targeting ₦312.3 billion in revenue for 2025 through 15 strategic transactions, including six revenue-generating and nine reform-based projects.

So far in 2025, BPE has raised ₦170.74 billion, buoyed by the successful concession of the Zungeru Hydropower Plant (₦101.5 billion) and the Afam III Fast Power project (₦53.92 billion). However, other transactions — such as the sale of coal blocks, non-core telecom assets, and hydropower concessions — remain either underperforming or in progress.

Gbeleyi said the Bureau’s focus remains on creating a more efficient and competitive public enterprise landscape. “For us at the BPE, we have indeed set sail on re-engineering the reform and privatisation of public enterprises, one transaction at a time,” he said.

Established in 1999 as the Secretariat of the National Council on Privatisation under the Public Enterprises Act, the BPE has since completed 243 transactions. Of these, 109 public entities have been either fully or partially privatized or commercialized, while 91 remain untouched — including Nigeria’s refineries, airports, railways, and steel complexes.

Although the DG did not go into detail on the refineries, he confirmed they fall among the major state-owned enterprises “yet to see action,” while indicating that plans are underway to “concession refineries, storage, and pipeline facilities” in the oil and gas sector.

According to him, the BPE stands ready to support any actions or policies aimed at halting the financial leakages associated with Nigeria’s refineries. He noted that the national conversation has moved past the question of whether or not to privatize the facilities, implying that reform is now a matter of urgency rather than debate.

Gbeleyi defended the overall impact of privatization on Nigeria’s economy, citing measurable gains in sectors such as telecoms, maritime, pensions, and power. He pointed to Nigeria’s telecom revolution, which has grown from 400,000 active lines under NITEL to over 169 million subscribers today, with the sector contributing 14.4% to GDP.

In the pensions sector, reforms have boosted Assets Under Management to ₦24.63 trillion as of June 2025, with more than 10.7 million Retirement Savings Accounts registered. In the ports, private terminal operations have cut cargo dwell times from 30 days to 7–14 days and attracted billions in investment since the 2006 port concessions.

On the power sector, Gbeleyi acknowledged the mixed results of previous reforms. Average electricity generation rose to 5,366mw in Q1 2025, up from 3,432mw in 2013.

Revenue collection across Discos climbed to ₦553.6 billion, aided by a reduction in government subsidies and an expanded metering rollout — over 6.4 million meters installed by March 2025, compared to just 403,000 in 2013.

Yet, challenges persist, including aggregate Technical, Commercial and Collection (ATC&C) losses which remain at 39.1%, down from 55% pre-reform – still far from acceptable levels. “The trajectory is positive, but we must do more,” Gbeleyi noted.

He also emphasized BPE’s evolving role in national development — including plans to commercialize national parks, restructure the Bank of Agriculture, support the mining sector, and expand public-private partnerships in infrastructure. Concessions for airports, roads, and seaport terminals are in the pipeline, alongside collaboration with ministries and development partners like the World Bank.

Gbeleyi, however, cited institutional resistance to reform, inadequate funding, legal uncertainties in the PPP framework, and longstanding litigation from legacy transactions involving entities like ALSCON, Sapele Power, and the Lagos International Trade Fair Complex as critical hurdles for the Bureau.

“There is an absence of clear and predictable legal and regulatory frameworks in the PPP space, and in some cases, MDAs resist reform,” he said.

Despite these challenges, the DG maintained that the Bureau remains committed to delivering its mandate. “The BPE will continue to play its role in line with the Public Enterprises Act to ensure shared prosperity and economic resilience,” he assured.