THE Asset Management Corporation of Nigeria, AMCON and Ibadan Electricity Distribution Company core investors-the Integrated Energy Distribution and Marketing, IEDM have reached an agreement to put on hold the take over of the DisCos assets.
This development was confirmed in a statement issued on Saturday by John Ayodele, the Chief Operating Officer of Ibadan Electricity Distribution Company.
Recall, AMCON had earlier relied on the judgement wherein the Federal High Court on the 8th of September 2021 granted preservative orders in favour of it to take over assets of Ibadan DisCos core investors.
However, John Ayodele in the statement confirmed that the investors have resolved on way forward with AMCON and status quo maintained.
John Ayodele in the statement said: “Further to the communication earlier sent on 20th January 2022, in respect of the above, kindly note that the investors have resolved on way forward with AMCON and status quo maintained.
“On behalf of the Board and Management, I urged all of us to go about our normal duties while we count on your unflinching commitment and dedication to ensure our revenue collection for this month and excellent service to customers are not compromised going forward.”
Also, an informed source who is familiar with the transaction Dan Kunle also told The ICIR that all the paper works regarding putting on hold the asset sales is being finalised.
He also confirmed that the Ibadan DisCo core investors have been paying their outstanding loan to the Bank its indebted to.
Recall that AMCON earlier announced taking over of the Ibadan Electricity Distribution Company Limited over the inability of the DisCo to clear its acquisition loan from Skye Bank, now Polaris Bank.
IBEDC, one of Nigeria’s 11 distribution companies distributes electricity to consumers in Oyo, Osun, Ogun and Ondo states as well as some parts of Ekiti and Kwara states.
Meanwhile, Jude Nwauzor, the official spokesperson for AMCON when contacted by The ICIR on this latest development failed to offer any response on the matter.
Apart from Ibadan DisCo, several other distribution companies have concerns of insolvency hanging over their neck.
The Nigerian government has to rely on World Bank facility support to the tune of $750 million support to close a metering gap of 8.181 million of unmetered customers according to NERC official statement on metering.
Industry experts say, metering should be done by the DisCos, as they are unable because many are largely insolvent.
The federal government it would be noted still pays N30bn monthly to subsidise consumption shortfalls in the Electricity Supply Industry.
Analysts ts told the ICIR the DisCos need to up their game with regard to investment in key infrastructure and improvement of a credible electricity market in the country, insisting that subsidies in the power sector is unsustainable.
“We cannot continue like this. The privatisation exposed how politicians bought the distribution companies are not so willing to make the necessary investment. How can the government be subsidising for a privatised company after how many years.” An associate consultant to the British Department Of International Development, Celestine Okeke, told the ICIR.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.