29.8 C
Abuja
29.8 C
Abuja

BEDC sues FG over restructuring

Advertisement

Related

Advertisement
Advertisement

Share this story

THE legal adviser to Vigeo Power Limited, majority shareholders in Benin Electricity Distribution Company Plc (BEDC), has commenced contempt proceedings against the Federal Government’s Bureau of Public Enterprise (BPE) over what it considered was an illegal take-over of the power distribution company (DisCo).

BEDC disclosed in a statement that the law firm of Kunle Adegoke, lawyer to Vigeo Power Ltd, said the contempt proceedings had become imperative.


READ ALSO:

Furore trailing DisCos take-over unhealthy for power sector reforms, experts warn

AMCON, banks’ take-over of DisCos won’t solve liquidity, structural problems in power sector – Experts

Insolvency concern forces FG to restructure ownership of power DisCos

DisCos to sign contract-based agreements to improve power supply efficiency


- Advertisement -

The law firm said this was because the attention of its client was drawn to a publication issued by the BPE on July 13, 2022, in which the Bureau strove to justify its take-over of BEDC.

The lawyer said the take-over was despite an order issued by the Federal High Court, Abuja, on July 8, 2022 in Suit No. FHC/ABJ/CS/1113/2022 between Vigeo Power Limited v. Fidelity Bank Plc and others.

“It is on record that the total shareholding of the BPE and the Ministry of Finance in BEDC is just 40 per cent, making the two of them minority shareholders, which pales into insignificance in the face of the 60 per cent shareholding held by Vigeo Power Limited, our client,” the law firm explained in the statement.

The Federal government had announced the restructuring of five electricity distribution companies (DisCos) in the country.

The announcement was contained in a statement jointly signed by the Executive Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba, and the Director-General of the Bureau of Public Enterprises (BPE), Alex Okoh.

The affected DisCos are the Kano Electricity Distribution Company (KEDCO), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), Kaduna Electric, and Port Harcourt Electricity Distribution Company (PHED).

Garba and Okoh explained that the announcement followed Fidelity Bank’s activation of the call on the collaterised shares of KEDCO, BDEC, and Kaduna Electric over their inability to repay loans obtained to pay for assets acquired in the 2013 privatisation exercise.

Author profile
- Advertisement -

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.

Support the ICIR

We invite you to support us to continue the work we do.

Your support will strengthen journalism in Nigeria and help sustain our democracy.

If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Support the ICIR

We need your support to produce excellent journalism at all times.

spot_img
Advertisement

Recent

Why I declined invitation to Chatham House — SDP presidential candidate

THE presidential candidate of the Social Democratic Party (SDP), Adebayo Adewole, has described his...

Redesigned Naira Notes: ICPC arrests bank officials over sabotage

THE Independent Corrupt Practices and Other Related Offences Commission (ICPC) has arrested officials of...

Scarcity of cash, petrol provokes protests, bank attacks in Ibadan

PROTESTS have erupted in Ibadan, the Oyo State capital, amid the growing frustration and...

Naira Redesign: Buhari asks for seven days to tackle cash shortage, blames banks for inefficiency

PRESIDENT Muhammadu Buhari has asked for seven days to tackle problems arising from the...

Naira Scarcity: Nigerians react to students, soldiers clash over cash withdrawal at UNIBEN

NIGERIANS on Twitter have been expressing their feelings over the recent clash between students...
Advertisement

Most Read

Advertisement

Subscribe to our newsletter

Advertisement