FG Assures of Continuous Service Despite DisCos Restructuring

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CEM REPORT | With the recent take-over and restructuring of 5 DisCos the Federal Government has assured that the process will not affect service delivery to Nigerians.

FG also adds that the National Mass Metering Programme will proceed as scheduled.

This is according to a statement by the the Minister of Power, Mr. Abubakar Aliyu in Abuja.

NAN reports that the Minister said the changes in the governance of the DisCos were as a result of the receivership of the core investors in Kano, Benin, Kaduna and lbadan DisCos, resulting in change of management.

”Whereas the actions in Port Harcourt DisCo are sought to provide much needed liquidity and prevent the insolvency and risk of collapse of the utility in implementing the changes.

“The Government will continue to hold a 40 per cent equity stake in all the DisCos.

“The utilities are still private sector led “going concerns” falling under theprovisions of the COMPANIES AND ALLIED MATTERS ACT (CAMA) and subject to regulation by the Nigerian Electricity Regulatory Commission (NERC).

”The ministry had received a confirmation from the Bureau of Public Enterprise (BPE) and the Central Bank of Nigeria that in exercising the rights of lenders to the core investors.

”The financial institutions do not retain the ownership of the shares and management of the DisCos in perpetuity.

‘“It is therefore expected that clear timelines for exit of the banks would be prescribed by the regulators as and when appropriate.”

The take-over and restructuring of the DisCos is as a result of their inability to meet with payments of loans owed to Banks and other bodies.

Recall that CEM reported that Fidelity Bank has taken over three DisCos and named new board members.

NERC and BPE had also appointed government representatives while it restructured the Port Harcourt DisCos to avoid a collapse.

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