The Assets Management Corporation of Nigeria has called for the sale of the Ibadan Electricity Distribution Company to viable investors as the only solution to improve its efficiency.
This was disclosed by the Managing Director/CEO of AMCON, Gbenga Alade during an interactive session with media executives in Lagos on Monday, according to The Punch.
Alade, who assumed office five months ago, noted that after reviewing AMCON’s cases, the power sector, particularly the situation with IBEDC, emerged as a critical concern.
Alade emphasized that a stable power supply is essential for economic growth, underscoring the importance of resolving the issues plaguing IBEDC.
Despite AMCON’s efforts to address these challenges, he acknowledged that the process remains incomplete.
In January 2022, AMCON took over IBEDC due to its insolvency, following a September 2021 court ruling that appointed AMCON as the receiver/manager of Integrated Energy Distribution and Marketing Limited, the parent company of IBEDC.
Commenting, Alade disclosed that the Disco being managed by AMCON would be sold to investors with ”deep pockets”.
“In the power sector, we have Ibadan DisCo, which is under AMCON. We’ve tried as much as possible to get that resolved. And we’re in the process. We are yet to conclude the sale, but we are making very good headway in resolving Ibadan DisCo,” he said.
Alade expressed confidence that the Ibadan Electricity Distribution Company (IBEDC) could become profitable if sold to the right investors.
“I believe that Ibadan Disco is the largest disco that we have because it goes across so many states like Ogun, including all the industrial areas of Ogun State. We believe that it can be made more efficient if sold to people with deep pockets who can invest, not people who just buy and not invest; they don’t have money to invest.
“With people who have deep pockets to invest in making that company more efficient and more effective, it will go a long way to helping the power sector,” he noted
Recall that the Minister of Power, Adebayo Adelabu, in April ordered the sale of Discos that have been taken over by banks and the Assets Management Corporation from its original investors/owners.
Currently, four electricity distribution companies in Nigeria are under the management of banks and AMCON.
In addition to IBEDC, which is managed by AMCON, the Abuja Electricity Distribution Company is under the control of the United Bank of Africa.
Meanwhile, Fidelity Bank oversees the operations of the Benin, Kaduna, and Kano DisCos.
