Vice President Kashim Shettima has issued a strong directive to members of the National Council on Privatisation (NCP), emphasizing the need for transparent, legally sound, and accountable practices in all ongoing and future privatisation processes. The Vice President, who doubles as Chairman of the Council, gave this charge during the second NCP meeting of 2025 held at the Presidential Villa, Abuja.
The meeting was convened to review critical transactions and strategic initiatives aimed at repositioning key national assets, particularly in the power and infrastructure sectors. Shettima used the platform to caution against negligence in documentation and oversight, stressing that every privatisation deal must pass the test of public interest and legal durability.
“We are almost always vulnerable to arbitration and being short-changed,” Shettima said in a statement released by his Senior Special Assistant on Media and Communications, Stanley Nkwocha. “Our legal committee must ring-fence every one of these transactions. Every transaction must be subjected to microscopic scrutiny so that ten years down the line, we will not be called upon to offer explanations as to how we conducted the transaction.”
Shettima emphasized that beyond economic viability, every privatisation agreement must meet both legal and moral obligations to the Nigerian people. He tasked the legal teams within the Council and the Bureau of Public Enterprises (BPE) to ensure airtight contractual frameworks that prevent legal vulnerabilities and arbitration disputes in the future.
His remarks were particularly relevant given Nigeria’s history of controversial privatisation deals, many of which have faced legal disputes, performance issues, or outright reversals.
Council Reviews Key Power Sector Deals
During the meeting, the Council reviewed several critical matters, including:
The divestment of government-held shares in the Ibadan Electricity Distribution Company (IBEDC) by acquisition lenders;
The delineation of assets and liabilities within the Transmission Company of Nigeria (TCN-NISO);
Updates on the concession review process for the Zungeru Hydroelectric Power Plant;
And the current status of the $500 million World Bank-supported Distribution Sector Recovery Programme (DISREP).
The Vice President reiterated that the power sector remains a linchpin in the government’s reform agenda. He noted that efforts must be made to strengthen public-private partnerships while safeguarding national assets and ensuring service delivery to Nigerians.
Shettima’s call aligns with the broader agenda of the Tinubu administration, which seeks to deepen investor confidence, drive economic diversification, and improve service delivery through the strategic transfer of state-owned assets to competent private players.
Experts believe this approach could yield significant gains if properly executed. However, they warn that missteps in legal frameworks or stakeholder engagement could lead to costly international arbitrations, as seen in past cases involving power and infrastructure concessions.
Shettima assured that the administration remains committed to due process, and to leveraging privatisation as a tool for sustainable economic development, not elite enrichment.
“We have to ensure that every decision taken here reflects the aspirations of Nigerians, not just for today, but for the future,” he said.
The NCP also received briefings on ongoing dispute resolution efforts between power sector entities and the BPE, indicating a renewed focus on contractual compliance and regulatory harmonisation.
As the nation continues its journey toward economic reform, the Vice President’s remarks reinforce the imperative for meticulous governance and stakeholder accountability in Nigeria’s privatisation roadmap.