• New boards for Kaduna, Kano, Benin distribution companies

• AMCON takes charge of IBEDC

Four electricity Distribution Companies (DisCos) are to be managed by new boards following their takeover by banks and the Assets Management Corporation of Nigeria (AMCON).

They are Kano, Benin, Kaduna and Ibadan DisCos.


Fidelity and AFREXIM banks, which collateralized the shares of Kano, Benin and Kaduna DisCos have appointed three-member boards, the Nigerian Electricity Regulatory Commission (NERC) and the Bureau of Public Enterprises (BPE) confirmed yesterday.

The Federal Government, which has 40 percent state in the DisCos, is represented in the new boards.

The regulators said AMCON, which has taken over the management of Ibadan DisCo, will be run by a placeholder board.

According to NERC and BPE, Fidelity and Afriexim banks shave notified the affected DisCos of collateralising their shares.

In a statement, NERC Chairman Sanusi Garba and BPE Director-General Alex Okoh, said the banks have commenced action to take over the boards of the energy distributing firms.


The joint statement reads: “Today we were informed by Fidelity Bank that they have activated the call on the collateralised shares of Kano, Benin and Kaduna (Fidelity and Afrexim) DisCos and that they have initiated action to take over the boards of these DisCos and exercise the rights on the shares.”

According to the statement, Fidelity Bank’s action is a contractual and commercial intervention and is between the Core Investors in the DisCos and the lender.

”BPE is involved because of the 40% shareholding of government in the DisCos,” the regulators explained that.”

Fidelity Bank has informed the banks that the new board members of the affected DISCOs will be as follows:

Kano DisCo: Hasan Tukur (Chairman), Nelson Ahaneku (member), Rabiu Suleiman (member)

Benin DisCo: KC Akuma (Chairman), Adeola Ijose (member), Charles Onwera (member)

Kaduna DisCo: Abbas Jega (Chairman), Ameenu Abubakar (member), Marlene Ngoyi (member)


The BPE nominated Bashir Gwandu (Kano), Yomi Adeyemi (Benin) and Umar Abdullahi (Kaduna) as independent directors to represent federal government’s 40 per cent interest in the three DisCos respectively, during this transition.

The statement by NERC and BPE further reads: “We are engaging with the Central Bank of Nigeria (as the banking sector regulator) to ensure an orderly transition and to ensure that Fidelity Bank does not hold the DISCOs’ shares in perpetuity.

“It is envisaged that the majority interest in the entities would be sold to capable private sector investors willing and able to re-capitalize and manage the entities efficiently.

“We have also received assurances that Fidelity Bank will participate fully in all the ongoing market initiatives aimed at improving the sector (e.g. National Mass Metering Programme).

“In the interim, NERC and BPE met on an Emergency Basis and activated the Business Continuity Process and have appointed interim Managing Directors in the affected DISCOs: Kano Disco – Ahmad Dangana; Benin Disco – Henry Ajagbawa and Kaduna Disco– Yusuf Usman Yahaya.”

The statement added that also, with the takeover of Ibadan DisCo by AMCON, the BPE has obtained approval from NERC to appoint Kingsley Achife as the interim Managing Director.

According to the regulators, “in a temporary capacity the leadership of AMCON will be a placeholder Board for the Ibadan franchise (Ahmed Kuru – Chair, Eberechukwu Uneze – Member, Aminu Ismail – Member). Oluwaseyi Akinwale will represent the interest of Government on the Board alongside the DG of BPE.

“Lastly, we are re-structuring the Management and Board of Port Harcourt DisCo to forestall the imminent insolvency of the entity. As a condition for support to the entity to meet its market obligations, Iboroma Akpana will take over as the Chairman of the Board. Emmanuel Okotete, Eyo Ekpo, Ismaila Shuaibu and the DG of BPE will form the interim Board. Mr. Benson Uwheru will take over as the Managing Director of PHEDC as part of the changes. Government will support the activation of Emergency funds through the Nigerian Electricity Market Stabilisation Facility to support the entity while it goes through restructuring and repositioning to serve the citizens of the franchise area better.

“We are working with the Honourable Minister of Power to ensure no service disruptions during these transitions. We remain committed to supporting the Nigerian Electricity Supply Industry to serve Nigerians better.”

https://thenationonlineng.net/banks-take-over-discos/

Just imagine the kind of questionable people that bought these discos. Nigeria is in a total mess. I can bet everything that apart from Abuja and Lagos discos. Others didn't invest anything to upgrade their assets.

Hmm

Only Peter Obi can save us in this country

When Peter obi becomes president, there would be steady power supply like we had in Anambra when he was Governor, enough savings for Nigeria, and most importantly, enough growth in his Pandora investment.

IPOB logic ehn..

Gone are those days I used to blame GEJ for the evil privatization he did. Seven years are enough for PMB to correct all the errors in the evil privatization but he has absolutely nothing meaningful to offer. Power never improved for once throughout this administration. Bedc should be the worst among all the distribution companies, they don't even care about the public perception of them. Still no prepaid meters from Bedc. It has never been this bad in the history of this country. This administration took Nigeria to a messy state the country has never ever been in

When will they take over Ikeja electric

Ok

From top to bottom. Naija

Top to Bottom yeah yeah

Corruption in these DisCos is on another level. They only remit half of the money they generated and share the rest.

Are they taking over to work or bent on recovering money??
This country is gone. Meanwhile

Peter Obi goes to Arise TV and discusses National issues while others go to Arise TV and discuss Peter Obi

Vote Peter Obi for Presidency. Let's try something different.

Nigeria can't afford the level of waste that has been institutionalised.

And the word said LET THEY BE LIGHT but Nigeria government said Let They Be Darkness.

Not surprised.

IBEDC cannot meet up its demands economically because it has to charge for bills below the cost of producing power, and because a lot of people do not pay their bills in its catchment area.

Combined together, it cannot run at a profit, and has to be taken over by AMCON.

The next president should actually look into the formation of AM ON. They are not doing their work at all

IBEDC is gone....
Amcon management style is for recovery of debt not for Growth...

Amcon will run the company in a way that help them get their money back....although I see them selling to another buyer soon

Ok

Omihanifa:
Just imagine the kind of questionable people that bought these discos. Nigeria is in a total mess. I can bet everything that apart from Abuja and Lagos discos. Others didn't invest anything to upgrade their assets.

xperiencelove:
Corruption in these DisCos is on another level. They only remit half of the money they generated and share the rest.

GOATandYAMtheory:
Only Peter Obi can save us in this country

When Peter obi becomes president, there would be steady power supply like we had in Anambra when he was Governor, enough savings for Nigeria, and most importantly, enough growth in his Pandora investment.

IPOB logic ehn..

I no fit laff..u don Sabi them

Na so fire burning happen for one place like that

One mumu come comment shouting Vote OBI to stop fire

Most IPOB people are mentally unstable

Many are mad few were roaming on the street

DropsMic:
Top to Bottom yeah yeah

How does this concern Buhari?

Jonathan privatised and sold the Disco and the Gencos...

If you want to criticise....lets be reasonable and think our contributions through...

In the case of security...you can knock Buhari as long as you like...because as an Ex-General....he is totally useless...but on this electricity issues...

Jonathan and PDP sold them under very foolish conditions..

stano2:
Are they taking over to work or bent on recovering money??
This country sha

Bwana they taking over to recover their money and finally dump them on Trash

Omihanifa:
Just imagine the kind of questionable people that bought these discos. Nigeria is in a total mess. I can bet everything that apart from Abuja and Lagos discos. Others didn't invest anything to upgrade their assets.

Maybe, but at the end, no business can run, shady or otherwise if government is telling them how much they should charge, and paying you money that barely covers your losses.

Meanwhile the cost of producing a unit of power is higher than the government set price.

There is a reason why no reasonable investor came in to invest in power. Government price setting.

Damnnn!!! Light is critically worst in Ibadan in recent times...

Akerele44:


I no fit laff..u don Sabi them

Na so fire burning happen for one place like that

One mumu come comment shouting Vote OBI to stop fire

Most IPOB people are mentally unstable

Many are mad few were roaming on the street

oz4real83:
Gone are those days I used to blame GEJ for the evil privatization he did. Seven years are enough for PMB to correct all the errors in the evil privatization but he has absolutely nothing meaningful to offer. Power never improved for once throughout this administration. Bedc should be the worst among all the distribution companies, they don't even care about the public perception of them. Still no prepaid meters from Bedc. It has never been this bad in the history of this country. This administration took Nigeria to a messy state the country has never ever been in

I hate to defend Buhari, but reversing the privatisation would amount to breaking a contract, which means that the government would be on the hook for millions or billions of naira in compensation to the now fromer owners should they do so.

(Yes, government did look at reversing and took legal advice on the matter. The advice was that if they did it, they pay compensation)

What a shame!

xperiencelove:
Corruption in these DisCos is on another level. They only remit half of the money they generated and share the rest.

Because if they don't they would collapse.

That they are even able to remit half is a miracle in itself...they barely have enough...plus they don't pay money to the treasury per se as do NNPC.....they pay money to GENCOS and the TCN....