For failing to meet up with the privatisation agreement entered into with the federal government in 2013, the Bureau of Public Enterprises has declared that Benin, Kaduna and Kano electricity distribution companies are the worst-performing Discos among the 11 power distributors in Nigeria.
The BPE stated as a result of their worst performance, the government through the Bureau of Public Enterprises and the Nigerian Electricity Regulatory Commission had resolved to sell the majority interest in the three Discos to competent investors.
The Director-General, BPE, Alex Okoh, disclosed this in a statement he personally signed while reacting to the resistance by some Discos on the move by Fidelity Bank and the government to take over and restructure poor-performing Discos.
He said the government has decided to appoint interim Management to pilot the affairs of the companies pending when competent investors would be sought to inject fresh capital into the Discos.
For Kano Disco, the interim Managing Director was named as Ahmad Dangana; Benin Disco, Henry Ajagbawa; and Kaduna Disco, Yusuf Yahaya.
Okoh said, “It is envisaged that the majority interest in these Discos would be sold to competent private sector investors with the requisite technical and financial capacity to re-capitalise and manage these entities efficiently.
“As an interim measure, NERC and BPE met on an emergency basis and activated the business continuity process and appointed interim Managing Directors in the affected Discos.
“It must be reiterated that some of the publications from the core investors of these Discos have been quite disingenuous. Beyond the financial issues I have just discussed, the Discos affected happen to be the worst-performing ones,” the BPE boss stated.
He added, “Ibadan is currently being managed by a so-called receiver manager as a sole administration. The receiver manager has absolutely no capacity to manage a utility and has not been authorised by the regulator as a manager of a Disco.
“Ibadan is the worst performing Disco as per the performance assessment review conducted in December 2021.