Nigeria plans to break-up the state-owned electricity monopoly in preparation for its sale as part of the country's controversy-plagued privatisation programme.

The sell-off comes as Nigeria suspended the service payments on its external debts due to falling oil revenues and the collapse of the national telecoms monopoly privatisation.

A row over the sale of a 49% stake in the country's flag carrier Nigeria Airways has further strained investor confidence in the privatisation programme.

The aviation ministry planned to sell a stake in the airline but the privatisation agency, the Bureau for Public Enterprises (BPE), has claimed it had not been consulted about the sell-off.

Power sale

National Electric Power Authority (NEPA) will be split into six power generators, one transmission and 11 distribution companies, a privatisation agency spokesman said.

A private management team will be contracted later this year to run the transmission arm of NEPA and ensure the efficient operation of the power grid during the privatisation process.

NEPA is currently struggling to provide power even to city dwellers in Nigeria as inefficiency and faulty equipment regularly lead to lengthy blackouts.

Africa's most populous country - with more than 120 million people - produces only 3,000 megawatts a day compared with South Africa, which with 40 million people and produces 40,000 MW per day.