The Federal Government (FG), on Wednesday, said the change in management of five electricity distribution companies was related to corporate governance.
Affected DisCos are; Kano, Benin, Kaduna, Ibadan and Port Harcourt.
This is contained in a statement issued a d signed by Isa Sanusi, Media Aide to the Minister of Power, Engr Abubakar Aliyu, in Abuja.
It said the changes in the respective Board of Directors and Management announced were a result of the receivership of the core investors in the case of Kano, Benin, Kaduna and Ibadan DisCos.
While in the case of Port Harcourt DisCo, it said this was to provide much-needed liquidity and prevent the insolvency and risk of collapse of the utility.
However, the statement stressed that while the Government continue to hold 40 per cent 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 has received a 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 the exit of the banks would be prescribed by the regulators as and when appropriate.”
It noted that implementing the changes will ensure that the changes in corporate governance do not impact the service and stability of the DisCos.
“We wish to reassure electricity consumers that the recent changes in the governance of the DisCos would not adversely impact the ongoing reform initiatives including the National Mass Metering Program,” the statement read.
