New boards will now manage four electricity Distribution Companies (DisCos) following their takeover by banks and the Assets Management Corporation of Nigeria (AMCON).
The DisCos are Kano, Benin, Kaduna, and Ibadan DisCos.
Nigerian Electricity Regulatory Commission (NERC) and the Bureau of Public Enterprises (BPE) confirmed yesterday that Fidelity and AFREXIM banks, which collateralized the shares of Kano, Benin, and Kaduna DisCos have appointed three-member boards.
The Federal Government, which has 40 percent state in the DisCos, is represented in the new boards.
The regulators said AMCON, which has taken over the management of Ibadan Disco, will be run by a placeholder board.
According to NERC and BPE, Fidelity and Afriexim banks have notified the affected DisCos of collateralizing their shares.
In a statement, NERC Chairman Sanusi Garba and BPE Director-General Alex Okoh, said the banks have commenced an action to take over the boards of the energy distributing firms.
The joint statement reads: “Today we were informed by Fidelity Bank that they have activated the call on the collateralized shares of Kano, Benin, and Kaduna (Fidelity and Afrexim) DisCos and that they have initiated action to take over the boards of these DisCos and exercise the rights on the shares.”
