Victor EzejaUnited Bank for Africa (UBA) has taken over majority stakes in the Abuja Electricity Distribution Company Plc (AEDC), thereby causing changes in the management structure.
This was disclosed in a statement by the Honourable Minister of Power, Engr Abubakar Aliyu while reacting to some media reports regarding the change in the AEDC management structure which he claimed were out of context on what really transpired.
Join our WhatsApp ChannelAliyu said the electricity distribution company has been faced with serious operational challenges arising from a dispute between KANN Consortium, a core investor that owns 60 per cent equity in AEDC, and UBA which lent the fund for acquisition of the majority shareholding of the disco.
The minister said that the incident at some point led to lack of access to intervention funding to finance operations resulting in entitlements of staff of the company being owed, leading to disruption of service within its area of franchise on December 6, 2021.
He explained that UBA as the lender, has taken over the shares of KAAN Consortium in AEDC, and consequently became the majority shareholder in the company, leading to management changes reported.
Part of the statement reads, “The Ministry wishes to notify all stakeholders that the AEDC has of recent been facing significant operational challenges arising from a dispute between the core investors (KANN consortium) as owners of 60% 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 lending to a point whereby legitimate entitlements of the staff are being owed thus leading to service disruptions on 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.
“The UBA, as a lender, and in exercising its rights over the shares of KANN Consortium in AEDC, has taken over the shares of the obligor in the AEDC. This takeover of the majority stake in AEDC by UBA has consequently led to the reported changes in the management of AEDC,” Aliyu stated.
He also disclosed that the changes in shareholding and appointment of an interim management for the company have been endorsed by the Nigerian Electricity Regulatory Commission (as the industry regulator), and the Bureau of Public Enterprises (as co-shareholders in AEDC).
Aliyu added that the power ministry is working with all stakeholders to ensure continuous service to the people in all areas served by the AEDC.
Recall that staff of AEDC had embarked on a one-day strike on Monday December 6, following unresolved issues bordering on unpaid entitlements. This was later resolved after a meeting between the National Union of Electricity Employees (NUEE), BPE and NERC and the ministry of power, with the parties signing an MOU to pay all outstanding entitlements.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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