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Osibodu’s Vigeo Holding Has Lost Ownership of Benin Disco, FG Insists

by Editor
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● Accuses Exited Investors of Disrupting Affairs of BEDC ● Warns actions may plunge four states into darkness 

By Chisaa Okoye (Business reporter)

The Bureau of Public Enterprises (BPE) has raised the alarm that the former Board and management of Benin Electricity Distribution Company (BEDC) are using non-state actors to forcefully disrupt the affairs of the electricity distribution company since the new management took over in July.
It has therefore warned that the actions if left unchecked, could plunge four states-Delta, Edo, Ekiti and Ondo (under the BEDC franchise) into darkness.
The National Council on Privitisation (NCP) had on July 5, sacked the board and management of Vigeo Holding, core investor in the BEDC and appointed a new management to take over the affairs of the Disco. This followed the failure of Vigeo Holding to meet up with the repayment of its debt obligations to Fidelity Bank Plc.
Vigeo Holding was founded by Mr Victor Osibodu and his wife, Funke Osibodu, a former managing director of Union Bank Plc. Mrs. Osibodu was the Managing Director of the power company.
The removal of the Osibodu- led management of the Benin DisCo, and boards of Kano and Kaduna Discos, followed the collateralised shares of the DISCOs by lenders which included Fidelity Bank, Afreximbank, Keystone Bank and Stanbic IBTC.
The new board for BEDC had KC Akuma as Chairman, Adeola Ijose, Charles Omoera, Yomi Adeyemi, director-general, BPE, Alex Okoh as members, and Henry Ajagbawa as Managing Director.
Whereas the restructuring action in Kano, Kaduna and Ibadan took place without issues, the Benin DisCo restructuring had faced disruptions by the investors that were exited, the BPE had said.
In a statement issued today, Sunday, September 18, 2022, the BPE alerted the public that the sacked management of BEDC has been using non-state actors to forcefully disrupt the affairs of the BEDC since the new management took over in July.
The BPE, in the statement signed by Yunana Jackdell Malo, its Director, Industries & Services on behalf of the Director General  Mr Alex Okoh, affirmed that “Vigeo Holding having defaulted on their loan facilities and having collateralized their controlling shares had lost ownership in the BEDC.”
It said that the Interim Board recognized by the NERC and the BPE has retaken operational control of the Headquarters in Benin with the support of authorities and already had financial control of the entity (BEDC).
The BPE said it will alongside with NERC continue to monitor the DisCo and work with the Ministry of Power and relevant law enforcement agencies to ensure no disruptions to service occur and that the interim Board and Management are allowed to proceed with their work unimpeded.
Further updates on the events at the BEDC provided by the BPE in the statement read:
“The Bureau of Public Enterprises (BPE) is monitoring the events at the Benin Electricity Distribution Company (BEDC) and is aware that the Interim Board recognized by the Nigerian Electricity Regulatory Commission (NERC) and the Bureau has retaken operational control of the Headquarters in Benin with the support of authorities.
“The Interim Board already had financial control of the entity and the usage of non-state actors by the former Board and Managing Director to forcefully disrupt the affairs of the entity was unfortunate.
“The actions if left unchecked risked plunging the citizens of Delta, Edo, Ekiti and Ondo (under the BEDC franchise) into darkness.
“It may be recalled that Vigeo Holding having defaulted on their loan facilities and having collateralized their controlling shares had lost ownership in the entity.
“Restructuring action had been announced on July 5th, 2022 by BPE and NERC for the Kano, Kaduna, Benin and Ibadan DiSCO franchises with Fidelity Bank stepping in to the Board and the appointment of an interim Management by BPE and NERC to stabilize the entities and avert any operational issues arising.
“The entities are to be transitioned from the Banks control to more financially and technically competent private investors under a structured process being monitored by the National Council on Privitisation (NCP) (via the Bureau) and the Central Bank of Nigeria.
“While the restructuring action in Kano, Kaduna and Ibadan took place without issue, the Benin DiSCO restructuring had faced disruptions by the investors that were exited.
“BPE commends the professionalism and actions of the relevant security agencies that supported the operational takeover of the HQ facility in Benin and the reinstatement of operational control of the HQ to the recognized interim Board and Management.
“BPE alongside NERC will continue to monitor the DiSCO and work with the Ministry of Power and relevant law enforcement agencies to ensure no disruptions to service occur and that the interim Board and Management are allowed to proceed with their work unimpeded.”
Following the announcement of July 5 on the take over of the Benin Disco, the sacked management of the company on July 8, sought and obtained an order of interim injunction from the federal high court in Abuja  restraining Fidelity Bank from taking over the Disco.

Consequently, the Vigeo management had issued a statement, claiming that “any attempt by Fidelity Bank and/or BPE to intervene in BEDC in the manner being reported will be illegal, unlawful and will be resisted”.

Providing further clarifications on the development, the BPE DG, Mr Alex Okoh, noted that the restructuring of the DisCos had been concluded by the NCP before the Interim Order of July 8  in a suit between Vigeo Power Limited and Fidelity Bank Plc and seven others over the board composition of BEDC.

Okoh said “the board composition of both BEDC and the other four DISCOs was concluded July 5, three days before the purported court order.”

He added: “For the avoidance of doubt, the council wishes to put the records straight as follows:

“Fidelity Bank informed the council, via its secretariat, the BPE, that they have activated the call on the collateralised shares of Vigeo Power Limited in BEDC.

” 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 per cent shareholding of the government in the BEDC.”

Okoh further explained that the Federal Government of Nigeria decided to appoint a new board of BEDC to safeguard the industry and support market stabilisation through restructuring and repositioning.

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