• Business - Companies
  • Updated: July 14, 2022

Privatisation Council Informs Public On DisCos Restructuring

Privatisation Council Informs Public On DisCos Restructuring

Following the decision taken by the Federal Government, concerning the board of various DisCOs across the country, the National Council on Privatisation (NCP) has deemed it fit to enlighten the public on the decision and says it is necessary to inform the public about measures taken by the Federal Government concerning the board of various DisCOs across the country.

Alex Okoh, the Director-General, Bureau of Public Enterprises (BPE), revealed this in a statement in Abuja on Wednesday.

AllNews Nigeria reports that on July 5, the Bureau of Public Enterprises (BPE)  and the Nigerian Electricity Regulatory Commission(NERC)  informed the public of the restructuring of the boards of Kano, Benin, and Kaduna DisCOs, following the collateralised shares of the DISCOs by the lenders which included Afreximbank, Keystone Bank, Stanbic IBTC, as well as Fidelity Bank.

Okoh said the attention of the NCP had been drawn to an Interim Order of the Federal High Court dated July 8.

“Following this unfortunate development, it has become imperative for the council to educate the staff of BEDC and the public, particularly those within the BEDC franchise area comprising Edo, Delta, Ondo, and Ekiti states.”

He said the government’s steps were published and aired in print and electronic media across the country and indeed the globe.

“Therefore, the NCP wishes to state that the board composition of both BEDC and the other four DISCOs was concluded July 5, three days before the purported court order.”

The director-general said in order to avoid doubt and for clarifications, the council wishes to put the records straight.

“Fidelity Bank informed the council, via its secretariat, the BPE, that they have activated the call on the collateralised shares of Vigeo Power Limited in BEDC.

”Fidelity Bank’s action is a contractual and commercial intervention between the core investor (Vigeo Power Limited) and the lender.

“BPE is involved because of the 40 per cent shareholding of the government in the BEDC.”

Okoh further explained that the Federal Government’s decision to appoint a new board of BEDC to safeguard the industry and support market stabilisation through restructuring and repositioning.

Okoh also identified the new board for BEDC had KC Akuma as Chairman, Adeola Ijose, Charles Omoera, Yomi Adeyemi, director-general, BPE as members, and Henry Ajagbawa as Managing Director.

However, he assured that the government would work to make sure there will be no service disruptions during these transitions.

“We remain committed to supporting the Nigerian Electricity Supply Industry to serve Nigerians better.

“The General public is therefore advised to be appropriately guided.”


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