25 January 2013 – This Day reports that Nigeria’s federal government has commenced the process of finalising negotiations which are expected to culminate in the execution of transaction documents which would lead to the handover of the power assets-including generation and distribution companies, to their preferred bidders.

The newspaper says that acting director-general, Bureau of Public Enterprises (BPE), Dikki Benjamin, said during the pre-negotiation meeting with the preferred bidders of Power Holding Company of Nigeria (PHCN) successor generation and distribution companies in Abuja that the negotiations had begun in earnest.

It followed the successful receipt of bank guarantees for 15% of the transaction value from the preferred bidders. Dikki says the privatisation agency’s bankers have affirmed and verified all the bank guarantees provided by the preferred bidders. “All the preferred bidders are qualified to enter this stage of the privatisation process, which is the finalisation of negotiation between the federal government and the bidders.”

He notes that transaction documents will be executed only after finalisation of negotiations. “Government wants to assure all preferred bidders and their financiers that we are working assiduously to ensure effective handover of these enterprises.”