FG, Fidelity Bank, Afreximbank Take Over Three Electricity Companies Over Debts Collected Since 2013

FG, Fidelity Bank, Afreximbank Take Over Three Electricity Companies Over Debts Collected Since 2013

  • The Federal government including banks have decided to take over control of three electricity companies over loan
  • The companies had borrowed the money to finance the purchase in 2013 when government decided to privatise PHCN
  • Fidelity Bank has in fact gone ahead to sack all board members and also announced new team which has been approved

The Nigerian government has taken over the operations of Kano and Kaduna electricity distribution firms (DisCos) due to debts owed to Fidelity Bank and African Export-Import Bank (Afreximbank).

The operations of Ibadan Electricity Distribution Company (IBEDC) and Port Harcourt Electricity Distribution Company (PHED) were also hampered. The government stated that the action is required to prevent the enterprises from insolvency, among other things.

The companies have failed to repay loans secured to pay for assets acquired during the PHCN privatisation exercise in 2013 according to BusinessDay report.

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Govt sieze electricity companies assets
PHCN was disbanded to various private distribution companies in 2013 Credit: aysde
Source: Getty Images

Affected companies board members sacked

The statement announcing the restructuring was signed on Tuesday, 5 July 2022 by the Executive Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba, and Director-General of the Bureau of Public Enterprises (BPE), Alex Okoh, the Cable reports.

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They also stated that the Asset Management Corporation of Nigeria (AMCON) will serve as a temporary replacement board for IBEDC while the PHED is restructured to avoid insolvency.

The NREC and BPE leaders stated that the new boards for the impacted discos had been authorized, and that the bureau was working with the Central Bank of Nigeria (CBN) and the Ministry of Power to ensure that there were no service delays throughout the changeover.

Despite heavy investments, Nigeria now generates 3,900 megawatts of electricity

Legit.ng reported that Nigeria now generates about 3,904 megawatts of electricity for its over 200 million population.

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The ministry of power said the current power generation is a marginal improvement, a statement by the ministry said on Tuesday, April 12, 2022, and it is important to bring it to 86,760.88MWH.

Power generation stood at 3,904MW as of Tuesday, April 12. 2022 before dropping by 1.96 per cent in comparison to 3,982.8MW recorded on Monday, April 11, 2022.

Source: Legit.ng

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