By Chisaa Okoye (Business Reporter)
Power supply situation in Nigeria’s Federal Capital Territory, Abuja, is getting worse day by day since United Bank for Africa (UBA) took over the management of Abuja Electricity Distribution Company (AEDC).
The electricity supply crisis that bedevilled the company since inception, has gone from bad to worse as recurrent power outages have paralysed commercial and social activities in the FCT, particularly Lugbe, Piwoyi, Kuchigoro, Kubwa, Gwarimpa and environs.
What is even more worrisome is that high estimated bills customers receive monthly from AEDC have not changed. Customers in its franchise areas still receive outrageous bills despite the very poor power supply.
The new board and management of the AEDC were named exactly six months ago to steer the operations of the company following a prolonged investors’ crisis that almost brought the company to its knees.
UBA Group Chair, Tony Elumelu
Although the core investors, KANN Consortium, had challenged the takeover of the AEDC by UBA management in court, the new board and interim management assumed duty in December 2021 despite the subsisting Court action.
KANN had acquired the Distribution Company in 2013 and was at loggerheads with the UBA, over its alleged inability to fully repay the loan obtained from the bank for the acquisition. The crisis that rocked the company affected staff welfare prompting workers to engage in protests over the non payment of arrears of their entitlements.
The frequent workers’ protests was alleged to have been instigated by the UBA in order to take over management of the company and recoup its funds.
In December 2021, the Ministry of Power and the Nigerian Electricity Regulatory Commission (NERC), approved UBA’s takeover of the company’s key board and management positions to enable it manage the firm and recoup its loan.
Victor Osadolor, a former Deputy Managing Director of UBA and Chairman of UBA Pensions, was appointed the new Chairman of the AEDC Board. Other members of the board were Alex Okoh, currently the Director General of the Bureau of Public Enterprises (BPE); Atiku Abubakar Tambuwal, Sam Adikamkwu; a legal practitioner and former Chief Legal Adviser at the United Bank for Africa (UBA); and Muyiwa Akinyemi, seasoned accountant and a current Group Executive at the United Bank for Africa (UBA).
Victor Osadolor, AEDC Chair
Also, Bada Akinwumi was appointed the interim Managing Director. The Akinwumi- led interim management had other members – Sani Usman (Interim Chief Business Officer); Babajide Ibironke (Interim Chief Finance Officer); Donald Etim (Interim Chief Marketing Officer) and Femi Zacheus (Interim Chief Technical Officer).
The new management was said to have been endorsed by both by the NERC and the BPE in separate letters dated December 9, 2021 copied the Chairman of UBA Group, Tony Elumelu.
Bada Akinwumi Dumps AEDC
Three months after the new board was constituted, the Interim Managing Director, Bada Akinwumi resigned from his position unannounced.
He was said to have been having running battle with the Chairman of the Board and was not allowed free hand to manage the company. Most of the measures he suggested that could revitalise the power company was said to have been jettisoned.
Frustrated by the protracted issues bedevilling the company and the lack of clear cut measures in place to address the lingering issues, he exited the company in Maech.
Bada Akinwumi (former interim MD)
Although, no official reason was given for Bada’s resignation, sources close to the company said it was unconnected with the protracted core investors issues, and other problems plaguing the power company.
Following Bada’s exit, Adeoye Fadeyibi, a former Managing Director/CEO of Eko Electricity Distribution Company, was appointed in March as the new Managing Director/Chief Executive Officer.
Adeoye Fadeyibi, AEDC’s new MD/CEO
Announcing Fadebiyi’s appointment, Osadolor described him as “a turn-around manager with over 20 years executive management experience”.
He said: “Fadeyibi succeeds Engr. Akinwumi Bada, who served as the company’s Interim Managing Director since last year and is now leaving to pursue other personal business aspirations.”
“Prior to joining AEDC, Fadeyibi was the Managing Director of Eko Electricity Distribution Company, (EKEDC) a Lagos based electricity utility company and is credited to have turned around the fortune of EKEDC by significantly reducing the company’s Aggregate, Technical, Commercial and Collection (ATC&C) losses, expanding its revenue base and delivering innovation in several aspects of the business.
“He was also the pioneer Managing Director at Transcorp Power Ltd, Ughelli, Delta State where he ramped up the generating company’s performance from 164MW to 634MW in 25 months. He joined Transcorp Power from General Electric where he had held several strategic roles with oversight for the Middle East and Africa”, the company said in a statement.
Osadolor, was optimistic that the new appointees would turn around the fortune of the AEDC. “We are very delighted that both Fadeyibi and Burkullu are joining our company and bringing with them exceptional abilities and invaluable industry expertise. They will effectively complement the component of management team already in place.
“These appointments are necessary steps in positioning AEDC towards efficiency in customer service delivery and ensuring the effectiveness of turn-around embarked upon by the new management of the company. We are convinced that with a combined industry experience of over five decades, the new executives are very capable of meeting the yearnings of millions of our customers who seek seamless power services,” Osadolor said.
AEDC also announced the appointment of Engr. Kassim Abdulahi Burkullu as its new Chief Technical Officer (CTO), to replace Mr. Oluwafemi Zacchaeus, the Interim Chief Technical Officer, who left the company soon after he was appointed in December last year.
Osadolor said: Burkullu, a seasoned engineer and energy industry expert, brings over 25 years’ cognate experience spanning several sectors. He joined AEDC from Kano Electricity Distribution Company (KEDCO) where he was Head, Corporate Technical Operations Services.”
AEDC Power Supply Woes worsen
In his maiden address to the AEDC staff members, Osadolor, had pledged that the interim management would embark on the transformation of the business “for our collective benefit.”
His words:“I want to assure you that the new Board of Directors is committed to the well-being of our employees. May I please request that all employees and stakeholders remain steadfast and support the interim management as they embark on the transformation of the business for our collective benefit. I thank you all for the sacrifices and commitment thus far as we begin this refreshing chapter of our corporate journey.”
But recent developments have shown that the AEDC has performed very poorly in the area of service delivery since the UBA took over the management of the company six months ago.
Checks revealed that the electricity supply situation in the FCT has worsened in the last one month, resulting in declining income for artisans and small business owners. Those who use diesel or gas -powered generators such as spend so much on fuel, resulting in profit losses. Lugbe, Piwoyi, Kuchigoro and environs are the worst hit.
Armadanews investigation also revealed that some businesses located in AEDC’s franchise areas are closing down owing to the lack of stable electricity supply. Amidst the poor electricity supply, customers still pay exorbitant bills because they’re not metered.
The lingering electricity supply problem has been attributed to decline in the performance of AEDC. But the management blame low power generation from the national grid for its woes.
The new management is also not fulfilling its promises in the area of staff welfare.
A source within the company hinted: “There is nothing new in terms of staff welfare. The new investors are not putting money into the company. They are only interested in recouping their money mainly through exorbitant bills. No plan to meter customers because they make millions of Naira monthly from estimated billings. There is nothing on ground to suggest they are procuring new equipment or embarking on maintenance of old ones. The marketers are given targets to generate revenue for the DisCo and they achieve it through estimated billings.”
Another issue of great concern is how the Disco allocates energy to consumers in its franchise areas. Some residents complain that whereas some parts of the FCT are supplied power for few hours, some areas witness total black out for days.
Describing the development as very unfair, some affected residents of Nyanya, Kubwa, Apo, Gwarimpa and environs recently urged the company to ensure equitable distribution of power in its franchise area. They have also called on the federal government and relevant authorities in the electricity industry to come to their aid as their businesses are under threat.