The Bureau of Public Enterprises (BPE) has announced a bold new chapter in Nigeria’s privatisation journey, revealing plans to list two electricity Distribution Companies (DisCos) and one Generation Company (GenCo) on the Nigerian Exchange (NGX) through an Initial Public Offering (IPO).
BPE Director-General, Mr. Ayodeji Gbeleyi, made the disclosure in Abuja during a media briefing, describing the step as central to President Bola Tinubu’s Renewed Hope Agenda. The listing, he said, would democratise ownership, strengthen transparency, and inject new funds into Nigeria’s struggling power sector.
While the announcement has sparked optimism, it has also raised pressing questions about the readiness of Nigeria’s electricity industry and whether the reforms will translate into tangible benefits for homes and businesses.
What Listing Means for Nigerians
For the first time in decades, Nigerians could directly own a slice of the electricity companies that power their daily lives. Through the IPOs, ordinary citizens will have the opportunity to invest in the DisCos and GenCo, potentially earning dividends while holding management accountable through shareholder oversight.
Analysts believe the move could also deepen Nigeria’s capital markets by attracting both retail and institutional investors. Crucially, listed firms are required to publish audited accounts and comply with corporate governance rules, fostering transparency in a sector long plagued by opacity.
“This is a chance to make the sector truly people-owned,” said Dr. Tunde Akinyemi, an economist at the University of Lagos. “When citizens become shareholders, it shifts the incentive structure. Nigerians will be more invested in ensuring the companies succeed, and management will face greater scrutiny.”
Challenges Facing the Power Sector
Despite the promise, the hurdles are formidable. Gbeleyi disclosed that shareholder loan agreements have been signed for 10 of the 11 DisCos, with disbursements expected soon. Yet, he admitted that the privatisation of five additional GenCos had been paused due to foreign exchange volatility and grid transmission constraints that have hampered their ability to supply eligible customers.
Nigeria’s electricity sector is fraught with structural weaknesses, ranging from liquidity shortfalls and high technical losses to limited metering coverage and policy inconsistencies.
“The IPO is a bold step, but it doesn’t erase the fact that power supply remains erratic,” warned Engr. Chika Okafor, a Lagos-based energy analyst. “Unless the grid is stabilised, and unless the regulatory environment is consistent, investors may hesitate, and Nigerians may not feel the impact of these listings in their homes.”
Labour leaders have also voiced caution. Comrade Hassan Yusuf, of the National Union of Electricity Employees (NUEE), said workers are wary that privatisation may worsen job security and service delivery if not properly managed. “We are not against reform, but we’ve seen how past privatisations neglected workers and customers alike. This time, transparency and fairness must be guaranteed,” he stressed.
BPE’s Wider Reform Agenda
Gbeleyi highlighted that the bureau’s ambitions extend far beyond the power industry. Under its broader economic diversification plan, the BPE is pursuing partial or full commercialisation of several government-owned entities, including the National Parks Service, Nigerian Film Corporation, Federal Mortgage Bank of Nigeria (FMBN), and the Federal Housing Authority (FHA).
In the transport sector, discussions are underway for the concession of five airports, while efforts to revitalise Baro Inland Port are ongoing in partnership with the Ministry of Marine and Blue Economy and the National Inland Waterways Authority (NIWA).
Energy-related projects are also being fast-tracked, such as the Distribution Sector Recovery Programme (DISREP), Afam III Fast Power Project, and the Makurdi Hydropower Plant, alongside reforms in Nigeria’s mining sector.
“This reform push reflects a recognition that the Nigerian economy cannot remain overly dependent on oil,” said Celestine Ukpong, an economist and policy analyst. “Diversification into energy, housing, transport, and even creative industries is critical if the country is to achieve sustainable growth.”
Obstacles on the Reform Path
The BPE chief admitted that the reform drive faces major headwinds. These include an unpredictable legal framework for public-private partnerships (PPP), resistance from some ministries and agencies reluctant to cede control, inadequate funding, and lingering litigation from past transactions.
Still, the bureau is working with the Ministry of Budget and Economic Planning and other stakeholders to build a pipeline of catalytic PPP projects capable of drawing private capital and stimulating growth.
“The focus is not just on privatisation but on strengthening the foundations of Nigeria’s economy through reforms that guarantee efficiency, competitiveness, and sustainability,” Gbeleyi emphasised.
The Road Ahead
The listing of DisCos and a GenCo on the NSE could mark a turning point in Nigeria’s long and troubled power sector reform. For citizens, it offers an opportunity to own and influence assets that affect their livelihoods. For government, it represents a bid to restore credibility to a privatisation programme that has often been criticised as opaque and elitist.
However, the real test lies in execution. Economists, analysts, and labour unions agree that unless structural issues in the power sector are tackled “from grid instability to metering gaps”, the IPOs risk being a financial reshuffle with little impact on electricity supply.
As Nigeria seeks to diversify its economy and achieve President Tinubu’s $1 trillion GDP target, the BPE’s reforms could become a template for future partnerships between the state and private investors. But for now, Nigerians are watching closely to see whether this latest promise delivers the light, “literally and figuratively” that has long eluded the nation.
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