…’Benin, Kaduna, Kano worst-performing DisCos’ – BPE
The Federal Government, on Friday, declared that Benin, Kaduna and Kano electricity distribution companies (Discos) were the worst-performing ones among the 11 power distributors in Nigeria.
It stated that based on this, the 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.
The BPE Director-General, Alex Okoh, disclosed this in an issued statement he personally signed, 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% (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 Plc.
The Government had also announced on Tuesday, through the BPE, that with the takeover of Ibadan Disco by the Asset Management Corporation of Nigeria, (AMCON), the BPE had obtained approval from NERC to appoint an interim managing director for the distressed power firm.
The government had further stated, in Tuesday’s restructuring notice, that it was restructuring the management and board of Port Harcourt Disco to forestall the imminent insolvency of the utility. However, the government’s stance was confronted by resistance by some affected power firms, a development that made the BPE declare on Friday that it would go ahead to sell the majority interest in Benin, Kaduna and Kano DisCos.
The BPE helmsman stated that notwithstanding the challenges in the sector, the government remained fully committed to ensuring optimal performance in the power sector and would not shy away from taking the necessary decisive action to achieve this.
