Section 24: Processing of privatization of the successor companies.

(1) The National Council on Privatisation may, at any time and by such means as it deems appropriate, begin the process of privatisation of the successor companies that are holders of generation licences, distribution licences or a transmission licence, in accordance with the provisions of the Public Enterprises (Privatisation and Commercialization) Act.
(2) Until such time the Minister has made a declaration in accordance with subsection (3) of this section, the Commission shall prepare, each year, a report for the Minister as to the potential for competition in the Nigerian electricity supply industry and these reports shall present the Commission's analysis and recommendations as to whether the Nigerian electricity supply industry has developed to the point where a more competitive market ought to be established under section 26, having regard to:
(a) the degree of privatisation that has occurred;
(b) the existence of a sufficiently large number of potentially competitive entities, so as to avoid the likelihood of an abusive market power; and
(c) the existence of other preconditions, including the necessary metering and information technology infrastructures, required for the operation of a more competitive electricity market.
(3) The Minister shall present to the President and the National Council on Privatisation and National Assembly, each report submitted by the Commission under subsection (2) of this section and when the Minister, in consultation with the President and the National Council on Privatisation is satisfied that the electricity market in Nigeria has developed to the point where a more competitive market ought to be established pursuant to section 26 of this Act, having regard to the criteria described in paragraphs (a), (b) and (c) of subsection 2 of this section, and the Minister shall issue a declaration that a more competitive electricity market is to be initiated.