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AMCON takes control of IBEDC over Failure to pay back Loan

The federal government has approved the takeover of Ibadan Electricity Distribution Company (IBEDC) and restructured the board.

This was contained in a statement jointly signed on Tuesday by the Executive Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba, and Director-General of the Bureau of Public Enterprises (BPE), Alex Okoh.

In January, Asset Management Corporation of Nigeria (AMCON) took over the assets of IBEDC for defaulting on a loan facility.

With the takeover of Ibadan DISCO by AMCON, the BPE has obtained approval from Nigerian Electricity Regulatory Commission (NERC) to appoint Kingsley Achife as the interim Managing Director.

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 the Government on the Board alongside the DG of BPE.

The government also approved Fidelity Bank’s takeover of Kano Electricity Distribution Company (KEDCO), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), Kaduna Electric, and Port Harcourt Electricity Distribution Company (PHED).

Read the statement announcing the restructuring below:

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RESTRUCTURING OF KANO, BENIN, KADUNA, IBADAN, AND PORT HARCOURT DISCOs

“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.

Fidelity Bank’s action is a contractual and commercial intervention between the Core Investors in the DISCOs and the lender. BPE is involved because of the 40% shareholding of the Government in the DISCOs. Fidelity Bank has informed us that the new Board members of the affected DISCOs will be as follows:

–              Kano DISCO: Hasan Tukur (Chairman), Nelson Ahaneku (Member), Engr. 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)

BPE has nominated Bashir Gwandu (Kano), Yomi Adeyemi (Benin), and Umar Abdullahi (Kaduna) as independent Directors to represent Government’s 40% interest in the three DISCOs respectively, during this transition.

We are engaging with the Central Bank of Nigeria (as the banking sector regulator) to ensure an orderly transition and that Fidelity Bank does not hold the DISCOs’ shares in perpetuity.

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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 to improve the sector (e.g. National Mass Metering Program).

In the interim, NERC and BPE met on an Emergency Basis and activated the Business Continuity Process and appointed interim Managing Directors in the affected DISCOs.

Kano Disco – Ahmad Dangana

Benin Disco – Henry Ajagbawa

iii.   Kaduna Disco – Yusuf Usman Yahaya

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.

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 the Government on the Board alongside the DG of BPE.

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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.

The government will support the activation of Emergency funds through the Nigerian Electricity Market Stabilization Facility to support the entity. At the same time, 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”.

Sanusi Garba      Alex A. Okoh

EXECUTIVE CHAIRMAN NERC DIRECTOR-GENERAL, BPE

IFRAME SYNC

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