The Federal Government has announced that it has successfully completed the takeover of struggling distribution companies, (DisCos), including Kaduna, Kano, Ibadan and Port Harcourt DisCos.
This was announced by the Director-General of the Bureau of Public Enterprise, (BPE), Alex Okoh, while briefing the National Council on Privatisation (NCP) chaired by Vice-President Yemi Osinbajo on the update of the takeover of the four electricity distribution companies (DisCos).
The DisCos were forced under new management over poor debt management issues.
The BPE Director-General informed Council that the take-over of Kaduna, Kano, Ibadan and Port Harcourt DisCos had been concluded successfully, adding that the challenge in the takeover of the Benin DisCo was being addressed.
Okoh also made a presentation on the concession of the Zungeru Hydroelectric Power Plant, inviting the National Council of Privatisation (NCP) to note steps taken by the Bureau to fast-track the process.
He presented for approval, a proposal to amend the Procedures Manual of the BPE, focusing on a legal framework, reform activities, pre-transaction activities, project advisory and delivery team, receipt of technical and financial transaction strategies, opening and evaluation of technical proposals, among others.
Recall that last month, the Federal Government announced the restructuring and take-over of 5 DisCos across the country by some banks, in a move that might not be unconnected with their inability to meet up with the repayment of their debt obligations.
This followed the activation of the call on the collateralised shares of Kano, Benin and Kaduna DisCos by Fidelity Bank Plc, with the initiation of action to take over the Boards of these DisCos and exercise rights on the shares.
