BEDC Ownership Tussle: Ekiti, Ondo, Delta, Edo may plunge into darkness

Ilesanmi AdekanbiSeptember 18, 2022

2 minutes read

The Benin Electricity Distribution Company (BEDC) may plunge into darkness the citizens of Ekiti, Ondo, Delta and the Edo States over the ownership tussle of the company, the Bureau of Public Enterprises (BPE) disclosed.

The crisis of BEDC brewing the company over the change of Management.

Newsflash Nigeria had reported in July that Fidelity Bank was taking over the boards of Kano, Benin and Kaduna distribution companies (DISCOs) and collateralise their shares.

The new board members of the Benin DISCO are K.C. Akuma, as the chairman, Adeola Ijose and Charles Onwera as members.

On Saturday, September 17, the Bureau of Public Enterprises (BPE) has warned that the crisis brewing in the (BEDC) over the change of Management may plunge into darkness the citizens of four States that are under the BEDC’s franchise if left unresolved.

The privatisation agency, however, assured that it would, alongside the Nigerian Electricity Regulatory Commission (NERC), Ministry of Power and relevant law enforcement agencies, continue to monitor events at the DiSCO to ensure no disruptions to service and that the interim Board and Management are allowed to proceed with their work unimpeded.

The BPE commended the professionalism and actions of the relevant security agencies that supported the operational takeover of the Headquarters facility in Benin and the reinstatement of operational control of the premises to the recognised interim Board and Management.

In a statement signed by Yunana Jackdell Malo Director, Industries and Services on behalf of the Director General, BPE, and made available on Saturday, he said the “BPE alongside NERC will continue to monitor the DiSCO and work with the Ministry of Power and relevant law enforcement agencies to ensure no disruptions to service occur and that the interim Board and Management are allowed to proceed with their work unimpeded.

“The Bureau of Public Enterprises (BPE) is monitoring the events at the Benin Electricity Distribution Company (BEDC) and is aware that the Interim Board recognized by the Nigerian Electricity Regulatory Commission (NERC) and the Bureau has retaken operational control of the Headquarters in Benin with the support of authorities.

“The Interim Board already had financial control of the entity and the usage of non-state actors by the former Board and Managing Director to forcefully disrupt the affairs of the entity was unfortunate. The actions if left unchecked risked plunging the citizens of Delta, Edo, Ekiti and Ondo (under the BEDC franchise) into darkness.”

It could be recalled that Vigeo Holding having defaulted on its loan facilities and having collateralised its controlling shares had lost ownership of the entity.

Following this, restructuring action was announced on July 5, 2022, by the BPE and NERC for the Kano, Kaduna, Benin and Ibadan DiSCO franchises with Fidelity Bank stepping into the Board and the appointment of an interim Management by BPE and NERC to stabilise the entities and avert any operational issues from arising.

According to the BPE, “the entities are to be transitioned from the Bank’s control to more financially and technically competent private investors under a structured process being monitored by the National Council on Privatisation (NCP) (via the Bureau) and the Central Bank of Nigeria.

“The restructuring action in Kano, Kaduna and Ibadan took place without issue, while the Benin DiSCO restructuring had faced disruptions by the investors that were exited,” the BPE explained further.