The Federal Government says it has successfully completed the takeover of non-performing electricity distribution companies namely Kaduna, Kano, Ibadan and Port Harcourt DisCos.
The Director-General of the Bureau of Public Enterprise, Mr Alex Okoh made the announcement 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 first taken over by AMCON or some creditor banks over poor debt issues and placed under new management.
At the meeting, the BPE Director General, Mr Alex Okoh, informed the 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, and opening and evaluation of technical proposals, among others.
In July, the Federal Government announced the restructuring and take-over of 5 ailing 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 their 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.
