Nigerian DisCos might not be bankable but that hasn’t stopped them from going public on the Nigerian stock exchange. However, the shares listing of Electricity Distribution Companies (DisCos) on the Nigerian Stock Exchange (NES) will be determined by the Bureau of Pubic Enterprises (BPE).
The C.E. Officer of ANED, Mr Azu Obiaya, said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday.
He said that the listing of the DisCos shares at the stock market could only be possible at the expiration of the five-year agreement entered with the BPE.
“From our perspective at the moment, the transactional agreement that the DisCos have with the Bureau of Public Enterprises, (BPE) essentially describes a five -year approach to the listing of shares in the stock market.
For us, that is what we believe to be the guiding framework in terms of the listing of our share and unless that changes, we really cannot speak on the plan that the government currently has.From our own perspectives, what is guiding us, in terms of listing of the DisCos shares is the share sale agreement that the DisCos have with the BPE. So unless we are informed that it has changed, that continues to be the guiding framework for us.
This new development generated some controversy with a sect of people questioning the DisCos decision of putting up their share listings despite the liquidity problem plaguing the power sector. While other feel that this might just be the best move by the DisCos to combat the liquidity crisis. Whichever side of the argument you take, let us know in the comment section.