Fidelity Bank Takes Over Boards of 3 DisCos, Works With FG on New Management Structure
The boards and executive managements of three electricity distribution companies, DisCos have been replaced by the major lenders, Fidelity Bank and AFREXIM, following the formal recall of the collateralized facilities the banks issued for the purchase of the power assets.
It is believed that the lenders recalled the facilities as the core power investors have not kept faith with their obligations. The DisCos are Kano, Kaduna and Benin Electricity Distribution Companies.
To execute the takeover, the banks have appointed their representatives into the boards of the three DisCos. Similarly, the Federal Government acting through Bureau of Public Enterprises (BPE) and the Sector Regulator, Nigerian Electricity Regulatory Commission (NERC), has appointed her representatives into the boards as well as interim managing directors for the three DisCos.
The new managing directors are: Mr Ahmad Dangana; Kano DisCo, Mr Henry Ajagbawa; Benin DisCo and Mr Yusuf Usman Yahaya.
Besides the above, BPE and NERC have also appointed representatives into the boards of Ibadan and Port Harcourt Electricity Distribution Companies as well as new managing directors. The interim MD for Ibadan DisCo is Engr Kingsley Achife, while Mr Benson Uwheru is the new Managing Director for Port Harcourt DisCo. The intervention in Port Harcourt DisCo is to forestall imminent insolvency, according to the public notice signed by the Director General of BPE, Alex A Okoh and Executive Chairman of NERC, Sanusi Garba, dated 5th July, 2022.
Other Fallouts of this Board/Management Change
CBN to ensure an orderly transition
CBN to also ensure that Fidelity Bank does not hold the DisCos shares in perpetuity (It is envisaged that the majority interest in the DisCos would be sold to capable private sector investors willing and capable to capitalize and manage the entities efficiently
Fidelity Bank has assured that it would participate fully in the ongoing market initiatives aimed at improving the sector eg mass metering.