FG assures consumers that the restructuring of DisCos will not affect the power supply

The Federal Government has revealed that the current restructuring of indebted DisCos will not affect service delivery to Nigerians.

This was revealed by the Minister of Energy, Mr. Abubakar Aliyu in a statement in Abuja on Wednesday, according to the News Agency of Nigeria.

The minister also noted that the changes will also not affect the rollout of the national mass counting program.

What the minister says

The Minister said that the announced changes in the governance of DisCos resulted from the receivership of the main investors of Kano, Benin, Kaduna and lbadan DisCos, leading to a change in management.

Aliyu said: “While shares in Port Harcourt DisCo aim to provide much needed liquidity and prevent insolvency and the risk of utility collapse as changes are implemented.

The news continues after this announcement

“The government will continue to hold a 40% stake in all DisCos.

Utilities are still privately run “operating companies” falling under the provisions of the COMPANIES AND RELATED AFFAIRS ACT (CAMA) and subject to regulation by the Nigerian Electricity Regulatory Commission (NERC). ).

The news continues after this announcement

”TThe ministry had received confirmation from the Bureau of Public Enterprises (BPE) and the Central Bank of Nigeria that it was exercising the rights of lenders to major investors.

“Financial institutions do not retain share ownership and management of DisCos in perpetuity.

‘”It is therefore expected that clear timelines for bank exit will be prescribed by regulators as needed.

What you should know

  • Nairametrics reported that the Federal Government has announced the restructuring and takeover of 5 Electricity Distribution Companies (DisCos) across the country by some banks in a move which may not be unrelated to their inability to meet repayment of his debts.
  • Fidelity Bank has listed the new board members of the 3 affected DisCos to be included; Kano DISCO: Hasan Tukur (president), Nelson Ahaneku (member), engineer. Rabiu Suleiman (member); Benin DISCO: KC Akuma (Chairman), Adeola Ijose (Member), Charles Onwera (Member) and Kaduna DISCO: Abbas Jega (Chairman), Ameenu Abubakar (Member), Marlene Ngoyi (Member).
  • BPE has appointed Bashir Gwandu (Kano), Yomi Adeyemi (Benin) and Umar Abdullahi (Kaduna) as independent directors to represent the federal government’s 40% stake in the 3 DISCOs respectively, during this transition.
  • In addition, NERC and BPE met on an emergency basis and activated the business continuity process and appointed Ahmad Dangana, Henry Ajagbawa and Yusuf Usman Yahaya respectively acting general managers of Kano DisCo, Benin DisCo and Kaduna DisCo.
  • The statement also said that with the takeover of Ibadan DisCo by AMCON, the BPE has obtained NERC approval to appoint Kingsley Acife as interim CEO as well as the restructuring of the management and board of directors of Ibadan DisCo. Port Harcourt DisCo to warn of impending solvency. of the entity.

Alan A. Seibert