The Bureau of Public Enterprises (BPE) has raised fresh concern of a possible blackout in Delta, Edo, Ekiti and Ondo States – under the Benin Electricity Distribution Company (BEDC) over the continued ownership crisis in the BEDC DisCo.
The interim board appointed by the federal government already had financial control of the entity. BPE in a statement that was issued yesterday said the usage of non-state actors by the former board and managing director to forcefully disrupt the affairs of the entity was unfortunate.
The Bureau said actions of the old management of the company must be quickly checked to avoid total power outage in the four states. “The actions if left unchecked risked plunging the citizens of Delta, Edo, Ekiti and Ondo (under the BEDC franchise) into darkness,” its director, industries & services Yunana Jackdell Malo stated.
The takeover of the company was done after Vigeo Holding defaulted on their loan facilities and, having collateralized their controlling shares had lost ownership in the entity.
Restructuring action was announced on July 5th, 2022 by BPE and Nigerian Electricity Regulatory Commission (NERC) for the Kano, Kaduna, Benin and Ibadan DiSCO franchises with Fidelity Bank stepping in to the Board and the appointment of an interim Management by BPE and NERC to stabilize the entities and avert any operational issues arising.
The plan is to transition the entities from the banks’ control to more financially and technically competent private investors under a structured process being monitored by the National Council on Privitisation via the Bureau and the Central Bank of Nigeria.
While the restructuring action in Kano, Kaduna and Ibadan took place without issue, the Benin DiSCO restructuring had faced disruptions by the investors that were exited.
BPE commended the professionalism and actions of the relevant security agencies that supported the operational takeover of the headquarter facility in Benin and the reinstatement of operational control of the headquarter to the recognized interim board and management.
BPE said it will continue to monitor the DiSCO alongside NERC and work with the Ministry of Power and relevant law enforcement agencies to ensure no disruptions to service occur and that the interim Board and Management are allowed to proceed with their work unimpeded.
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
