FG to List Power Assets on Nigerian Exchange to Boost Transparency and Investor Confidence
The Federal Government has unveiled plans to list three of Nigeria’s top-performing power assets on the Nigerian Exchange (NGX), in a move expected to attract fresh investments and deepen capital market participation. According to the Bureau of Public Enterprises (BPE), the assets will include two electricity distribution companies (DisCos) and one generation company (GenCo). Officials say the decision is part of a broader reform strategy to improve governance in the power sector while giving ordinary Nigerians a stake in previously privatised utilities.
Insiders familiar with the process revealed that profitability and operational efficiency will be the main criteria for selecting the assets. Recent tariff reforms, especially the Band A model that links higher billing rates to more reliable electricity, have significantly boosted the revenues of several DisCos, making them stronger candidates for listing. “This is not about taking underperforming companies to the market. The plan is to take the best,” a senior government source explained, adding that investors, both retail and institutional, stand to benefit from the transactions.
The BPE, led by its Director General Ayodeji Gbeleyi, is currently working with the National Economic Council (NEC) to resolve equity issues involving state governments, some of which hold stakes in the targeted assets. Officials stress that the listings will only proceed once states’ ownership claims are clarified and protected. The government also intends to complete the process before the 2027 elections, framing it as a statement of transparency and inclusivity in Nigeria’s economic reforms.
Analysts note that while Nigeria’s power privatisation programme launched in 2013 delivered mixed results, recent policy shifts have started to turn around parts of the sector. A successful listing on the NGX, they argue, would not only bring in long-term domestic and international capital but also enforce stronger market discipline on power companies. However, experts caution that transparent valuation, robust investor engagement, and regulatory oversight will be critical to the success of the plan.
Globally, the strategy mirrors practices in emerging markets such as India and China, where power companies like NTPC Limited, Tata Power, and China Yangtze Power have thrived on stock exchanges, achieving market capitalisations in the hundreds of billions of dollars. Analysts believe Nigeria’s adoption of this model could significantly strengthen the NGX and give citizens a real sense of ownership in a sector central to the country’s growth. “We are past the idea stage,” a government adviser stressed. “This is now about execution, the assets are being evaluated, the timing is being assessed, and the political will is there.”
Source: Business day