NERC Dissolves Nigerian DisCo's Board, Moves to Sell Company over N110 Billion Debt
- The Nigerian Electricity Distribution Commission (NERC) has dissolved the board of Kaduna DisCo
- The commission said the company has failed to meet its financial obligations and is indebted to the tune of N110 billion
- NERC disclosed willingness to sell the company to core investors at the highest
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A few days after the Nigerian Electricity Regulatory Commission (NERC) threatened to sanction DisCos over electricity load rejection, the commission dissolved the board of Kaduna DisCo over N110 billion debt.
NERC said the dissolution came following the company's inability to meet its obligations, which amounted to N182.16 billion in the last four years.
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Kaduna DisCo records revenue and remittance shortfall
The amount includes N51.9 billion market remittance shortfall, N25 billion minimum capital expenditure requirements, and N11.46 billion operations expenses requirement for 2023.
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According to NERC, from 2020 to 20222, Kaduna DisCo recorded N93.41 billion in market remittance shortfalls, amounting to an outstanding N186.16 billion.
Kaduna DisCos is owned by Afrexim Bank, Bureau of Public Enterprises (BPE), and Fidelity Bank and is seeking a core investor.
NERC appoints new board for electricity company
NERC said in a 9-page order signed by its Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni, that the dissolution took effect from January 1, 2024.
It appointed Umar Abubakar Hashidu as the Sole Administrator of the utility, with Alex Okoh as Chairman, Kabir Adamu, Sharfudeen Mahmoud, John Ayodele, and Rahila Thomas as non-executive director.
A Vanguard report says that NERC explained that its analysis shows that the electricity company is experiencing severe liquidity challenges. Its commercial viability and continuation as a market participant is still being determined.
Electricity company to be sold to a new investor
Per the regulator, the company has consistently failed to meet its obligations to the market in violation of the EA and the commission's electricity distribution license terms and conditions.
The commission said the company would be sold to investors at the highest and best price.
NERC speaks on electricity tariff hike from January 1, 2024, issues subsidy report
Legit.ng reported that the Nigerian Electricity Regulatory Commission (NERC) has debunked a widespread report of an impending electricity tariff hike beginning January 1, 2024.
Reports emerged on Sunday, December 31, 2023, of a purported plan by electricity distribution companies (DisCos) to hike tariffs nationwide this January.
The reports said the DisCos had perfected plans for the new tariff to take effect from January 2024.
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