The federal government through the Bureau of Public Enterprises (BPE) and the Nigerian Electricity Regulatory Commission (NERC) had resolved to sell the majority interest in the three Discos to competent investors.
This is as BPE revealed that Benin, Kaduna and Kano electricity distribution companies were the worst-performing Discos among the 11 power distributors in Nigeria.
The Director-General of BPE, Alex Okoh, disclosed this in a statement he personally signed on Friday while reacting to the resistance by some Discos on the move by Fidelity Bank and the government to take over and restructure poor-performing Discos.
The receiver/manager’s nominee of Integrated Energy Distribution and Marketing Company had argued on Wednesday that it was the legal and beneficial owner of 60 percent (controlling and managing) shareholding interests in the Ibadan Electricity Distribution Company.
Also, the management of Benin Electricity Distribution Company Plc had argued on Wednesday that there was no legal basis for the takeover of the company following the purported activation of the call on its collateralised shares by Fidelity Bank.
Both firms had disclosed this in reaction to the announcement of the Federal Government on Tuesday regarding the takeover of Kano, Benin and Kaduna electricity distribution companies by Fidelity Bank Plc after the bank initiated action to take over the boards of the three Discos.
The government had also announced on Tuesday through its Bureau of Public Enterprises that with the takeover of Ibadan Disco by the Asset Management Corporation of Nigeria, the BPE had obtained approval from NERC to appoint an interim managing director for the distressed power firm.
Okoh said, “It is envisaged that the majority interest in these Discos would be sold to competent private sector investors with the requisite technical and financial capacity to re-capitalise and manage these entities efficiently.
“As an interim measure, NERC and BPE met on an emergency basis and activated the business continuity process and appointed interim Managing Directors in the affected Discos.”
For Kano Disco, the interim Managing Director was named as Ahmad Dangana; Benin Disco, Henry Ajagbawa; and Kaduna Disco, Yusuf Yahaya.
“It must be reiterated that some of the publications from the core investors of these Discos have been quite disingenuous. Beyond the financial issues I have just discussed, the Discos affected happen to be the worst-performing ones,” the BPE boss said.
