FG restructures five electricity distribution companies

Adebayo Obajemu

The Federal Government of Nigeria said it has finally restructured five electricity distribution companies, also known as DISCOs, in the country.

In a statement jointly signed 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, they both explained that the action was sequel to Fidelity Bank’s activation of the call on the collaterised shares of KEDCO, BDEC, and Kaduna Electric over their inability to repay loans obtained to pay for assets acquired in the 2013 privatisation exercise.

The affected companies are Kano Electricity Distribution Company (KEDCO), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), Kaduna Electric, and Port Harcourt Electricity Distribution Company (PHED).

The Asset Management Corporation of Nigeria (AMCON) has been designated a placeholder board for IBEDC in a temporary capacity while the PHED undergoes restructuring to prevent its imminent insolvency.

The new Boards for the affected discos have been approved and the bureau was collaborating with the Central Bank of Nigeria (CBN) and the Ministry of Power to ensure no service disruptions during the transition.