₦airaland Forum

The Abuja Electricity Distribution Plc (AEDC) says it has transitioned into a holding company (HoldCo) to enhance its ability to operate effectively within Nigeria’s evolving power market and decentralised regulatory environment.

The DisCo, in a statement on Sunday, said the move follows the enactment of the Electricity Act of 2023, empowering state governments to establish independent electricity markets and regulatory commissions.

The company, in response to the regulatory shift, said it has restructured its corporate operations to improve agility, strengthen governance, and enhance service delivery across its franchise areas.

The AEDC also disclosed that it incorporated two new subsidiary companies — Niger Electricity Distribution Company and the Kogi Electricity Distribution Company — as part of the transformation,

“These entities will operate under the Niger State Electricity Regulatory Commission (NSERC) and the Kogi State Electricity Regulatory Commission (KSERC), respectively, while remaining integral members of the AEDC Group,” the statement reads.

“Key executive appointments have been made, including Engr. Sam Odekina as Chief Business Officer and Acting Managing Director of Niger Electricity Distribution Company, and Mr. Desmond Eboh as Chief Business Officer and Acting Managing Director of Kogi Electricity Distribution Company.

“Plans are underway to commence operations in Nasarawa State, with the transition process expected to begin soon.”

The DisCo reaffirmed its dedication to supporting sustainable, state-regulated electricity markets and setting benchmarks for efficiency, reliability, and customer experience.

The company said it serves the federal capital territory (FCT) and parts of Niger, Kogi, and Nasarawa states, expressing its dedication to powering economic growth and improving quality of life.

AEDC noted that the recently executed conditions of service apply “uniformly to all employees across the parent company and its subsidiaries, underscoring the group’s commitment to workforce stability, fairness, and alignment during the transition”.

Commenting on the development, Chijioke Okwuokenye, AEDC’s managing director and chief executive officer (CEO), said the HoldCo structure positions the company to respond to state-specific regulatory requirements while maintaining a unified corporate identity, shared values, and a strong commitment to operational excellence and customer service.

“All subsidiaries will operate as one integrated AEDC family, with uniform Conditions of Service for employees, ensuring workforce stability and fairness,” he said.

“The Holdco structure aligns perfectly with our goal to enhance operational efficiency and adapt to Nigeria’s evolving energy landscape while exploring new opportunities, drive growth and contribute to Nigeria’s energy sector development.”

Okwuokenye added that the AEDC is committed to “maintaining our high standards of service, innovation and customer focus, even as we evolve into a new structure”.

BlackViper:
https://www.thecable.ng/abuja-disco-transitions-into-holdco-unveils-new-subsidiaries/

David160:
I hope the new structure leads to incraese in power supply for us living in the FCT.

donleo92:
This Nepa people no go kee common man oh!!!

Light we no see, but bills dey come

donleo92:
This Nepa people no go kee common man oh!!!

Light we no see, but bills dey come

nairalanda1:
Nigerians no dey like to hear truth.

You live in a country where a large proportion of people underpay or refuse to pay their light bill in the name of poverty. Meanwhile, the power sector has been privatised, meaning the government has no hand in running it since 2014 (some will even argue sincew 2004). Only 20% of customers in theory pay cost reflective tarrifs...and all this translates to massive losses of potential profits...the sector made 1 trillion in one year, when in principle it needs 15 trillion naira in yearly investment alone, which is not possible because ...of the above issues with most not paying or underpaying.

And you guys will come and call me APC supporter for saying this, when it is common business sense that a company that does not make a profit cannot do well at all.

Even the corruption, ripping off customers by overcharging and estimated billing is because the circumstances mentioned above forces the companies to do it.

Brendaniel:
You and this your one way analysis, one solution for every problem...

ironheart:
We want a downward review of electricity tariff.

David160:
I hope the new structure leads to incraese in power supply for us living in the FCT.

nairalanda1:
Nigerians no dey like to hear truth.

You live in a country where a large proportion of people underpay or refuse to pay their light bill in the name of poverty. Meanwhile, the power sector has been privatised, meaning the government has no hand in running it since 2014 (some will even argue sincew 2004). Only 20% of customers in theory pay cost reflective tarrifs...and all this translates to massive losses of potential profits...the sector made 1 trillion in one year, when in principle it needs 15 trillion naira in yearly investment alone, which is not possible because ...of the above issues with most not paying or underpaying.

And you guys will come and call me APC supporter for saying this, when it is common business sense that a company that does not make a profit cannot do well at all.

Even the corruption, ripping off customers by overcharging and estimated billing is because the circumstances mentioned above forces the companies to do it.

nairalanda1:
It's not one-sided , it's simple logic

When you put a company in a position where only a minority of consumers pay profitable prices and the rest don't pay, it eventually stands to reason the company won't perform well. And it won't even have enough money to buy transformers and wires

And corruption will happen in the form of estimated billing and overcharging as well.

And which investor is going to invest in a business where only 20% of consumer is paying cost reflective tarrifs? When they know they won't see ROI.

I mean it is simple logic. Very simple logic. Has nothing to do with politics. Infact apc is even damaging the power sector by keeping price controls.

Meanwhile in countries like ivory coast, they deregulated the power sector. Everyone was placed on band A in the 1990s. The result is a working power sector even during the 2000s when there was political instability.

nairalanda1:
It's not one-sided , it's simple logic

When you put a company in a position where only a minority of consumers pay profitable prices and the rest don't pay, it eventually stands to reason the company won't perform well. And it won't even have enough money to buy transformers and wires

And corruption will happen in the form of estimated billing and overcharging as well.

And which investor is going to invest in a business where only 20% of consumer is paying cost reflective tarrifs? When they know they won't see ROI.

I mean it is simple logic. Very simple logic. Has nothing to do with politics. Infact apc is even damaging the power sector by keeping price controls.

Meanwhile in countries like ivory coast, they deregulated the power sector. Everyone was placed on band A in the 1990s. The result is a working power sector even during the 2000s when there was political instability.