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FG completes takeover of Kaduna, Kano, Ibadan and Port Harcourt DISCOs

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2 years ago

August 22, 2022

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The Federal Government has announced that it has successfully completed the takeover of struggling distribution companies, including Kaduna, Kano, Ibadan and Port Harcourt DISCOs

This was announced by the Director-General of the Bureau of Public Enterprise, Mr Alex Okoh while briefing the National Council on Privatisation (NCP) chaired by Vice President Yemi Osinbajo on the update of the takeover of the four electricity distribution companies (DISCOs).

The DisCos were forced under new management over poor debt management issues, according to the News Agency of Nigeria.

The BPE Director General, Mr. Alex Okoh, informed council that the take-over of Kaduna, Kano, Ibadan and Port Harcourt DISCOs had been concluded successfully, adding that the challenge in the takeover of the Benin DISCO was being addressed.

Okoh also made a presentation on the concession of the Zungeru Hydroelectric Power Plant, inviting NCP to note steps taken by the Bureau to fast track the process.

He presented for approval, a proposal to amend the Procedures Manual of the BPE, focusing on legal framework, reform activities, pre-transaction activities, project advisory and delivery team, receipt of technical and financial transaction strategies, opening and evaluation of technical proposals, among others.

It would be recalled that last month that the Federal Government has announced the restructuring and take-over of 5 electricity distribution companies (DisCos) across the country by some banks in a move that might not be unconnected with their inability to meet up with the repayment of its debt obligations.

This followed the activation of the call on the collateralized shares of Kano, Benin and Kaduna DisCos by Fidelity Bank with the initiation of action to take over the boards of these DisCos and exercise rights on the shares

Meanwhile, the restructuring and forceful take-over of the Benin Electricity Distribution Company (BEDC) Plc led to a monthly loss of N750 million.

This was disclosed in a press briefing by Mrs Funke Osibudu, the Managing Director of BEDC, in Benin on Tuesday following her reported arrest by the Police over the leadership tussle in the company.