Benin, Discos, Government, Ibadan, Kaduna, Kano, Ministry of Power, Port Harcourt

Ibadan & Benin DisCos Resist Board Dissolution by BPE

Posted: July 9, 2022 at 12:43 pm   /   by   /   comments (0)

The Nigerian Power sector is undergoing interesting times. Recently, the Bureau of Public Enterprises (BPE) and the sector regulator, Nigeria Electricity Regulatory Commission (NERC) met and dissolved and replaced the boards and managements of five electricity distribution companies (DisCos) following the lenders recall of funds advanced to core investors for the purchase of power assets.

According to the lenders, the core Investors have not kept faith with their expected obligations.

Two of the five DisCos, Benin and Ibadan have denounced the move by BPE and NERC, describing it as unlawful and promising to resist the restructuring.

The new board and management of Kaduna Electricity Distribution Company newly appointed by BPE and NERC have already assumed duties as they held their inaugural meeting on Friday. The other two DisCos are Kano and Port Harcourt DisCos.

Reacting to the report of resistance from some DisCos, the Director General of BPE, Alex Okoh, said these DisCos were the least performing and that their majority shares would soon be sold to new investors.

The BPE stated that notwithstanding the sector challenges, the government remains fully committed to ensuring optimal performance in the sector and would not shy away from taking decisive actions to achieve this. He explained that the bureau considered it necessary to clear the air on the insinuations and statements emanating from some of the DisCos whose boards and managements were restructured following the recall of collaterised shares of the DisCos.

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