The level of the energy demand and utilization in a country’s economy, is largely indicative of its degree of economic development. It also gives a sense of its economic growth trajectory. To accelerate economic growth and development in the face of very poor grid power supply, the Federal Government of Nigeria (“FGN”) concluded it was pertinent to substantially privatize the Nigerian electricity supply industry.
Thus, the partial (but substantial) privatization of the Nigerian electric power sector forged ahead with the signing of the Share Sale and Purchase Agreements (“SSPA”) and the Concession Agreements (“CA”). Apart from the SSPA and the CA, other relevant transaction and industry documentation, for 15 out of the 18 companies hived off the Power Holding Company of Nigeria (“PHCN”) were signed at the Presidential Villa, Federal Capital Territory, Abuja, Nigeria, on Thursday 21st of February, 2013. By November 2013, the companies were handed over to the new owners/ core investors and concessionaires.