. The Fidelity Bank Loan that Landed Them In Trouble, led to sack of Funke Osibodu of Benin DisCo, and Dr. Jamil I. Gwamna of Kano Disco
. Yola, Ibadan, Abuja, now Kano, Kaduna and Jos DisCos, how the list of failed DisCos hit Six
. Names of new MDs for Benin, Kano and Kaduna DisCos unveiled
. Electricity consumers jubilate, open up on DisCos loss of licenses over technical incapacitation, and financial insolvency
The Nigerian government has taken over three non-performing electricity distribution companies; Kano, Kaduna, and Benin DisCos.
Platforms Africa reports that the Nigerian Electricity Regulatory Commission (NERC) and Bureau of Public Enterprises (BPE), have, based on the statutory responsibilities given to them by government, sacked the managing directors of the three DisCos and announced their replacements with immediate effect.
The three firms were considered to be technically incapacitated, and financial insolvent after their loan facilities from Fidelity Bank became moribund, landing them in trouble with the Bank.
NERC and BPE, in a jointly signed statement obtained by Platforms Africa; named Ahmad Dangana as the new MD for Kano Disco, Henry Ajagbawa for Benin, and Yusuf Usman Yahaya as the MD for Kaduna DisCo.
They replaced Funke Osibodu formerly of Benin DisCo, and Dr. Jamil I. Gwamna formerly of Kano Disco. Yusuf Yahaya who was just made the MD of Kaduna was re-appointed under this new takeover regime.
The three-page statement jointly signed by Engr. Sanusi Garba, Chairman NERC; and Alex Okoh, Director General of BPE, added that the action became necessary as Fidelity Bank has informed the government that it had activated the call on the collaterised shares of the threecompanies and “that they have initiated action to take over the biards of these DISCOS and exercise their rights on the shares.”
Yola, Ibadan, and Abuja DisCos hace earlier lost their initial management and with these new takeover of Kano, Kaduna and Benin DisCos, the list has swollen to six.
Meanwhile, Electricity consumers have commended the government over the three newly taken over DisCos for technical incapacitation, and financial insolvency.
Rising under the auspices of the
Nigeria Consumer Protection Network, the consumers said the three DisCos failed in their review of key performance indices.
Kunle Kola OLUBIYO President of the group said in a statement to Platforms Africa:”Electricity Consumers Applaud Takeover
TECHNICALLY INCAPACITATED FINANCIALLY INSOLVENT ELECTRICITY DISTRIBUTION COMPANIES
“Ordinarily the Licensees had a Ten Years Tenor. The Mid Term Review ought to have taken place 5 Years into the Post Privatisation Exercise.
“This was not done across board ..
The Open Book Review, Service Level Agreement, Mass Metering, Investment in Network Improvement & Overhauled,
ATC & C Losses, Governance Structure.
“The So called failed in all Benchmarked Global Best Practices and Key Performance Indicators
As against Investment in Immediate, Medium and Long Term, What we had is
Rent Seeking, Profiteering and Lack Fiscal responsibility and much needed Discipline ..
No Sector can survive if and where there are no Sanctions For Impunity and No Consequences For Infractions.
“In the prevailing circumstances , we are on the same page with relevant Stakeholders in the present efforts to clean up the mess and free the Economy held by its jugular by the Non Performing Utilities.”