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NERC, BPE brief Minister of Power about shake-up in 5 DisCos

In implementing the changes, the ministry said it would ensure that the changes in corporate governance do not impact the service and stability of the DisCos.

Minister of Power, Mr Abubakar Aliyu. [nairametrics]

The NERC and BPE on Tuesday, July 5, 2022, announced the restructuring Board of Directors and Management of the distribution companies.

The changes announced were as a result of the receivership of the core investors in Kano, Benin, Kaduna, and Ibadan DisCos whereas the actions in Port Harcourt are sought to provide much-needed liquidity and prevent the insolvency and risk of collapse of the utility.

In implementing the changes, the ministry said it would ensure that the changes in corporate governance do not impact the service and stability of the DisCos.

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“We wish to reaffirm that while the government continues to hold a 40% equity stake in all the DisCos, the utilities are still private sector-led “going concerns” falling under the provisions of the COMPANIES AND ALLIED MATTERS ACT (CAMA) and subject to regulation by NERC”, the ministry said.

It added that it has received confirmation from the 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.

We wish to reassure electricity consumers that the recent changes in the governance of the DisCos would not adversely impact on the ongoing reform initiatives including the National Mass Metering Program”, the ministry said.

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