The recent dissolution of the Board of the Abuja Electricity Distribution Company Plc has been clarified by the Ministry of Power (AEDC).
The reported sacking of the company’s management has been mainly transmitted out of context, according to a press release signed by the minister of Power, Abubakar Aliyu.
The minister said: “The attention of the Federal Ministry of Power has been drawn to publications in the print and electronic media relating to recent changes in the ownership structure and management at the
Abuja Electricity Distribution Company Plc (“AEDC”).
“While noting that the news has largely been communicated out of context, the ministry wishes to notify all stakeholders that the AEDC has, of recent, been facing significant operational challenges arising from a dispute between the investors (KANN Consortium) as owners of 60 percent equity in AEDC and the UBA as lenders for the acquisition for the majority shareholding in the public utility.
“The situation has currently deteriorated due to lack of access to intervention finances leading to a point whereby legitimate entitlements of the staff are being owed thus leading to service disruptions on the 6th December 2021 within its franchise area.
“The Federal Ministry of Power has since taken the initiative to engage organised labour and electricity service has since been restored in the FCT and the states served by AEDC.”
“This takeover of the majority stake in AEDC by UBA has consequently led to the reported changes in the management of AEDC.
“The changes in shareholders in AEDC and the appointment of an interim management for AEDC by the shareholders has been endorsed by the Nigerian Electricity Regulatory Commission (the industry regulator) and the Bureau of Public Enterprises (BPE as co-shareholders in AEDC),” the minister added.
The minister explained that UBA, as a lender, and in exercising its rights over the shares of KANN Consortium in AEDC took over the shares of the obligor in AEDC.
The minister reaffirmed the commitment of the ministry of power to work with all partners to maintain service continuity in all of the AEDC’s areas of service.