The Nigerian Electrical energy Regulatory Fee, on Monday, introduced the dissolution of the board of administrators of Kaduna Electrical energy Distribution Firm over the Disco’s incapability to pay N110bn debt owed to the Nigeria Electrical energy Provide Business.
In a regulatory order dated January 1, 2024 and signed by the Chairman and Vice Chairman of NERC, Sanusi Garba and Musiliu Oseni, respectively, the fee said that the board of the agency had been dissolved.
Kaduna Disco is amongst 5 Discos that have been taken over by their promoters after the core buyers have been unable to pay again the borrowed funds used to accumulate the corporate throughout privatisation in 2013.
In July 2022, the Federal Authorities introduced the deliberate takeover of Kano, Benin and Kaduna electrical energy distribution firms by Constancy Financial institution Plc after the financial institution initiated motion to take over the boards of the three Discos.
It had additionally introduced by the Bureau of Public Enterprises that with the takeover of Ibadan Disco by the Asset Administration Company of Nigeria, the BPE had obtained approval from NERC to nominate an interim managing director for the distressed energy agency.
The federal government had additional said in a restructuring discover issued on the time, that it was restructuring the administration and board of Port Harcourt Disco to forestall the upcoming insolvency of the utility.
The discover was signed by the Director-Normal, BPE, Alex Okoh; and Govt Chairman, NERC, Sanusi Garba.
Business operators said that since that point, Kaduna Disco had been going through liquidity challenges, which resulted within the dissolution of its board by NERC as introduced by the fee on Monday.
The agency’s Managing Director Yusuf Yahaya, had introduced his resignation from the corporate on Saturday.
In its order launched on Monday, the facility sector regulator said that Kaduna Disco owed N110bn to the Nigerian Bulk Electrical energy Commerce and the Market Operator of the Transmission Firm of Nigeria from 2015 until date.
It mentioned the receivership, headed by Afrexim financial institution, had been given 60 days’ discover to state why its licence shouldn’t be cancelled with one other 30 days given in July final yr.
The fee mentioned the financial institution requested 4 to 6 months to finalise the divestment course of and that they may not present the financial institution ensures required to safe KAEDC’s market obligation.
The NERC in its order, subsequently said that the failure of the corporate to get a brand new proprietor to allow it to satisfy its monetary obligations had led to “all administrators of KAEDC are hereby faraway from workplace and the board of administrators stands dissolved within the train of powers vested within the fee by Part 75 of the Electrical energy Act.”
The fee then appointed Umar Hashidu because the administrator of Kaduna Disco in furtherance to Part 75 of the Electrical energy Act.
“The administrator shall be the de facto Chief Govt Officer of KAEDC and shall be liable for the administration of the day-to-day affairs of the utility pending the finalisation of the sale of the enterprise to a brand new core investor.
“The administrator shall work with a group of particular administrators that shall represent non- government administrators of the board for governance functions. The next are hereby appointed as particular administrators for KAEDC; Alex A. Okoh, Chairman; Kabir Adamu, Sharfuddeen Mahmoud, John Ayodele and Rahila Thomas,” the regulator said in its order.
It famous that the manager administration group that shall work with the administrator can be constituted by the fee and introduced in the end.
The fee additional said that it shall administer the sale of the enterprise in accordance with the provisions of the Electrical energy Act on the premise of the best and finest worth provided for the enterprise.
This got here as Kaduna Disco introduced the resumption of responsibility of its new CEO, Hashidu.
“Umar Hashidu has taken over the reins because the Chief Govt Officer of Kaduna Electrical. He took over from Yusuf Yahaya who exited final week,” the Head, Company Communication, Kaduna Disco, Abdulazeez Abdullahi, mentioned within the assertion.
Hashidu took over throughout a short handover ceremony presided over by Dafe Akpaneye, the NERC Commissioner for Authorized Licensing and Compliance, who performed the ceremony on the firm’s company headquarters in Kaduna.
Akpaneye thanked the previous boss of the agency for the work he put in for 18 months, and charged Hashidu to harness the expertise and sources out there to him to take Kaduna Electrical to higher heights.