Interesting and more lib-oriented model…
Lagos — For Nigerians to benefit immensely from the on-going privatization of the generations and distributions companies of Power Holding Company of Nigeria (PHCN), the Chartered Institute of Stockbrokers (CIS) on Thursday asked the Federal Government to offer Nigerians about 25 per cent equity participation in the proposed companies.
The Federal Government has offered for privatization six generating companies and 11 distribution companies.
The president of the CIS, Ariyo Olusekun while speaking on the forthcoming 16th annual conference of the association in Lagos Thursday said allowing Nigerians to participate in the deals would enhance efficiency of the companies while also serves as security for equipment and property of the companies.
“We feel that about 25 per cent equity participation should be given to Nigerians. It will give them an opportunity to invest and be part owners of the companies. If we have made mistakes in the past in the previous privatization processes, I think we have an opportunity to correct ourselves especially with the on-going privatization of distribution and generating companies of Power Holding Company of Nigeria (PHCN)”, he said Olusekun said the equity should be made to the public through offer for sale.
“Government should reserve some percentage. I will suggest in the first place, the 25 per cent equity should be sold through an offer for sale to the public. The core investors have taken 51 per cent still the major owners and will control the companies. The advantage of these is that it will make Nigerians part owners of the companies and they will benefit from the profit and loss of the companies