Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Industries Energy

FG restructures 5 indebted DisCos, banks take over shares

Chike Olisah by Chike Olisah
July 6, 2022
in Energy
NERC says Nigerians will access improved power supply from July 1

Sanusi Garba, Chairman, Nigerian Electricity Regulatory Commission (NERC)

Share on FacebookShare on TwitterShare on Linkedin

The Federal Government has announced the restructuring and take-over of 5 electricity distribution companies (DisCos) across the country by some banks in a move that might not be unconnected with their inability to meet up with the repayment of its debt obligations.

This follows the activation of the call on the collateralized shares of Kano, Benin and Kaduna DisCos by Fidelity Bank with the initiation of action to take-over the boards of these DisCos and exercise rights on the shares.

This disclosure is contained in a statement jointly signed by the Executive Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba, and the Director-General of the Bureau of Public Enterprises (BPE), Alex Okoh, on Tuesday.

RelatedPosts

COMARTs rely on price increases, shrinkflation to post record revenues in first half of 2022

Bitcoin on 5th day winning streak, hits highest level since June 13

List of new board members for the affected DisCos

  • Fidelity Bank listed the new board members of the 3 affected DisCos to include; Kano DISCO: Hasan Tukur (Chairman), Nelson Ahaneku (Member), Engr. 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 nominated Bashir Gwandu (Kano), Yomi Adeyemi (Benin), and Umar Abdullahi (Kaduna) as independent Directors to represent Federal Government’s 40% interest in the 3 DISCOs respectively, during this transition.
  • Also, NERC and BPE met on an Emergency Basis and activated the Business Continuity Process and have appointed Ahmad Dangana, Henry Ajagbawa and Yusuf Usman Yahaya as interim Managing Directors of Kano DisCo, Benin DisCo and Kaduna DisCo respectively.
  • The statement also says that with the take-over of Ibadan DisCo by AMCON, the BPE has obtained approval from NERC to appoint Kingsley Achife as interim Managing Director as well as the restructuring of the management and board of Port Harcourt DisCo to forestall the imminent solvency of the entity.
  • It stated that as a condition for support to the Port Harcourt entity to meet its market obligations, Iboroma Akpana will take over as the Chairman of the Board.
  • Emmanuel Okotete, Eyo Ekpo, Ismaila Shuaibu and the DG of BPE will form the interim Board. Mr, while Benson Uwheru will take over as the Managing Director of PHEDC as part of the changes.

Major shares in affected DisCos to be sold to private investors

Meanwhile, NERC and BPE noted that they are engaging with the Central Bank of Nigeria (as the banking sector regulator) to ensure an orderly transition and to ensure that Fidelity Bank does not hold the Kano, Benin, and Kaduna DISCOs’ shares in perpetuity.

The statement says, ‘’It is envisaged that the majority interest in the entities would be sold to capable private sector investors willing and able to re-capitalize and manage the entities efficiently.

News continues after this ad


‘’We have also received assurances that Fidelity Bank will participate fully in all the ongoing market initiatives aimed at improving the sector (e.g. National Mass Metering Program).’’

FG to activate emergency funds and ensure no service disruptions

The government will support the activation of Emergency funds through the Nigerian Electricity Market Stabilization Facility to support the entity while it goes through restructuring and repositioning to serve the citizens of the franchise area better.

News continues after this ad


Also, NERC and the BPE says they are working with the Minister of Power to ensure no service disruptions during these transitions and remain committed to supporting the Nigerian Electricity Supply Industry to serve Nigerians better.

Related

Tags: DISCOSFeaturedFidelity BankNERCNigerian Electricity Regulatory CommissionSanusi Garba

Comments 1

  1. Dan Abbagu says:
    July 6, 2022 at 12:43 pm

    What happens to the Jos Disco that has been performing abysmally below any known standard?

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Lagos moves to establish RoW for Opebi-Mende Link Bridge, to serve demolition notices
    • Ghanaians endure hardship as country’s Misery Index jumps to 60.8 in July
    • FoodCo launches 16th outlet in Ikoyi, Lagos

    Follow us on social media:

    Recent News

    Lagos warns against indiscriminate physical developments on Lekki regional road

    Lagos moves to establish RoW for Opebi-Mende Link Bridge, to serve demolition notices

    August 15, 2022
    Ghanaians endure hardship as country’s Misery Index jumps to 60.8 in July

    Ghanaians endure hardship as country’s Misery Index jumps to 60.8 in July

    August 15, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com