The Federal Government has announced that it has successfully completed the takeover of struggling distribution companies, including Kaduna, Kano, Ibadan and Port Harcourt DISCOs
This was announced by the Director-General of the Bureau of Public Enterprise, Mr Alex Okoh while briefing the National Council on Privatisation (NCP) chaired by Vice President Yemi Osinbajo on the update of the takeover of the four electricity distribution companies (DISCOs).
The DisCos were forced under new management over poor debt management issues, according to the News Agency of Nigeria.
What the FG is saying
The BPE Director General, Mr Alex Okoh, informed council that the take-over of Kaduna, Kano, Ibadan and Port Harcourt DISCOs had been concluded successfully, adding that the challenge in the takeover of the Benin DISCO was being addressed.
Okoh also made a presentation on the concession of the Zungeru Hydroelectric Power Plant, inviting NCP to note steps taken by the Bureau to fast track the process.
He presented for approval, a proposal to amend the Procedures Manual of the BPE, focusing on legal framework, reform activities, pre-transaction activities, project advisory and delivery team, receipt of technical and financial transaction strategies, opening and evaluation of technical proposals, among others.
What you should know
- Recall Nairametrics reported last month that 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 followed 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
- Meanwhile, the restructuring and forceful take-over of the Benin Electricity Distribution Company (BEDC) Plc led to a monthly loss of N750 million.
- This was disclosed in a press briefing by Mrs Funke Osibudu, the Managing Director of BEDC, in Benin on Tuesday following her reported arrest by the Police over the leadership tussle in the company.
Their is a need to readdress the issues of electricity supply, it has been a need of urgency as far back as of the days of Kanji hydroelectric power station at Shroro dam downstream to Oshogbo. To be honest formerly NEP plc.had been of measure of discounted rate of its bill as at of that time where need for adequate supply of electricity means to survive has been of detriment to living. Today, electricity is of pay as you go which control the limit of limitations to use of bill acquired to be recorded of profit yield on seconds of time in a life-bieng, privatization of electricity has done a lot of last in solution to the problem of inadequacy of electricity supply. The newly means to make it last long is supplement of it by solar system that serve as energy reservation and conservation to allow light of energy system to be of all occurrence in all angle of manner. The supply of electricity should always have a substitute like that of solar energy, inverters and diesel or petrol generator,all this aforementioned are needed as utility worth and total netwoth of energy generated of money cost of cashier earning of daily routine of life impact.
BEDC should be the first to hand over to FG, because they failed us the users , we bought for them.
Sincerely this is a welcome development from government.
However, BEDC (Benin DISCO) should be the first to be taken over as this company is notoriously outstanding for inflicting pains on her innocent customers.
Imagine someone who is not own a dim and paid over N150,000 for meter procurement but he was not given the meter rather, they continue to bring bills at monthly exorbitant incremental rates
What justification will make BEDC bring a bill of over N70,000 to a three bedroom bungalow without an AC in a month?
I think that would be the best.
I see no reason why management of social amenities should be in the hands of individuals. The government just find a way of enriching their cronies at the expense of the masses.
It is unfortunate that metering system of electricity consumption is still not perfect as consumers are forced to pay for meters.The man selling bore hole water too is right if he demands his customers to come along with their meters to ascertain the quantity of water he sell daily.
Government should take decisive action on those to manage the organization now to improve the service delivery for Nigerians to enjoy what they are paying for.
This is a good development from the FG. IBEDC should be taken over because of their poor distribution of power. They lack the capacity and competency. Like the case of Magboro Ogun State. The power here is epileptic, they rotate the light at will, Small scale businesses find it so difficult to survive in this community. We pay heavily on fuel to power generator, so of what use is IBEDC with their crazy bills.