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BPE: No Going Back on New Boards for Benin Disco, Others

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…Says interim order issued three days after board composition
By Chisaa Okoye
The Bureau of Public Enterprises (BPE) has explained that the Board composition of Benin Electricity Distribution Company (BEDC) and  four other DisCos was concluded by the National Council on Privatisation (NCP) three days before the interim order of the Federal High Court in respect of a suit between Vigeo Power Limited vs. Fidelity Bank Plc and seven others over the board composition of BEDC.
The BEDC had on July 8, 2022, obtained an Interim Order of the Federal High Court in an attempt to halt the board’s composition.
In a statement issued on Wednesday by the Director-General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh, the BPE stated that the interim order was obtained by the BEDC three days after the new boards had been constituted.
Specifically, Okoh explained that the Board composition of the various Electricity Distribution Companies across the country was concluded on the 5th of July, 2022 and published/aired in both the print and electronic media across Nigeria and globally.
“The National Council on Privatisation wishes to state that the Board composition of both BEDC and the other four (4) DisCos was concluded on the 5th July, 2022, three (3) days before the purported Court Order”, the statement added.
 
According to the BPE boss, the explanation came after the NCP’s attention was drawn to an Interim Order of the Federal High Court dated 8th July, 2022, in respect of a Suit between Vigeo Power Limited vs. Fidelity Bank Plc and seven others over the board composition of BEDC.
 
 Okoh reiterated that the federal government’s action was to safeguard the electricity industry and support market stabilisation through restructuring and repositioning to serve the citizens of the franchise area better.
Below is full text of the statement:
The attention of the National Council on Privatisation (NCP or Council) has been drawn to an Interim Order of the Federal High Court dated 8th July, 2022, in respect of a Suit between Vigeo Power Limited vs. Fidelity Bank Plc and 7 Others over the Board composition of Benin Electricity Distribution Company (BEDC).

Following this unfortunate development, it has become imperative for Council to educate both the staff of BEDC and the public; particularly those within the BEDC franchise area comprising Edo, Delta, Ondo and Ekiti States of the steps taken by the Federal Government regarding the Board composition of the various Electricity Distribution Companies across the country which were concluded on the 5th of July, 2022 and published/aired  in the print and  electronic media   across the country and indeed the globe as follows:

1.    NTA aired it during its primetime news at 9 pm on July 5, 2022;and

2.    Channels TV aired it during its primetime news at 10 pm on July 5, 2022.

3.    It was  was also carried as an advertorial on July 6, 2022, by the following papers:

a.   The Guardian-Page 28;

b.   Thisady-Page 17;

c.   The Punch-Page 25; and

d.   Daily Trust-Page 27.

4.    Similarly, it was published as news in the following newspapers and online platforms:

a.   Leadership-FP/29;

b.   The Nation-FP/4;

c.   Vanguard-Page 25;

d.   Businessday-FP/30;

e.   https://www.thecable.ng/fidelity-bank-afreximbank-take-over-benin-kano-discos

f.     https://www.premiumtimesng.com/business/business-news/541145-nigerian-govt-announces-restructuring-of-five-electricity-companies.html

g.   https://gazettengr.com/fidelity-bank-to-take-over-kano-benin-kaduna-discos/

h.   https://www.blueprint.ng/fidelity-afrexim-to-take-over-kano-benin-kaduna-2-other-discos/

i.      https://pmnewsnigeria.com/2022/07/06/fg-fidelity-bank-amcon-take-over-5-discos-over-debts/

j.      https://insidebusiness.ng/185195/fidelity-bank-takes-over-kano-disco-two-others-in-lingering-power-sector-crisis/

k.    https://precisepost.ng/fg-reacts-as-fidelity-bank-takes-over-three-discos/

l.      https://nigeriannewsdirect.com/alleged-unpaid-debts-osibodu-dantata-lose-benin-kano-kaduna-discos-to-fidelity-bank-afrexim/

m. https://www.nairaland.com/7213599/3-discos-get-new-boards

n.   https://veritynewsonline.com/2022/07/06/fg-intervenes-as-fidelity-bank-takes-over-three-discos/

o.   https://www.newstimes.com.ng/fidelity-bank-takes-over-benin-kano-kaduna-discos-over-multi-billion-naira-debt/

p.   https://platformsafrica.com/2022/07/06/breaking-mds-fired-as-nigeria-takes-over-benin-kano-kaduna-discos/

q.   https://www.solacebase.com/2022/07/06/131553/

Therefore, the National Council on Privatisation wishes to state that the Board composition of both BEDC and the other four (4) DisCos was concluded on the 5th July, 2022, three (3) days before the purported Court Order.

For the avoidance of doubt, the National Council on Privatisation wishes to put the records straight as follows:

1.   Fidelity Bank informed Council, vide its Secretariat, the Bureau of Public Enterprises, that they have activated the call on the collateralised shares of Vigeo Power Limited in BEDC.

2.   Fidelity Bank’s action is a contractual and commercial intervention between the Core Investor (Vigeo Power Limited) and the lender. BPE is involved because of the 40% shareholding of the Government in the BEDC.

3.   Federal Government, in order to safeguard the industry and also support the Market Stabilization through restructuring and repositioning to serve the citizens of the franchise area better, decided to appoint a new Board for BEDC comprising the following:

a.  KC Akuma (Chairman),

b.  Adeola Ijose (Member),

c.   Charles Omoera (Member),

d.  Yomi Adeyemi (Member),

e.   DG (BPE) (Member), and

f.     Henry Ajagbawa  (Managing Director).

4.   Government will work to ensure no service disruptions during these transitions. We remain committed to supporting the Nigerian Electricity Supply Industry to serve Nigerians better.

The General public is therefore advised to be so appropriately guided.

Signed:

Alex A. Okoh

Director General

July 13, 2022.

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