New Telegraph

FG sacks Kaduna Disco board over N110bn debt

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Kaduna Electricity Distribution Company (KAEDC) board following its failure to a debt of N110 billion owed to the Nigerian Electricity Supply Industry (NESI).

Managing Director Yusuf Yahaya announced his resignation from the company on Saturday. In an order dated January 1, 2024 and signed by Sabusi Garba (Chairman) and Musiliu Oseni (Vice Chairman) the regulatory agency said the order was also due to the receivership of the company not being able to get a new buyer of the company on time.

KAEDC is one of the five Discos taken over by their funders after the core investors were unable to pay back the borrowed funds used to acquire the company during privatisation in 2013.
According to the order, the company has been owing the Nigerian Bulk Electricity Trade (NBET) and TCN’s Market Operator (MO) N110 billion since 2015.

It stated that the receivership, headed by Afrexim bank, had been given 60 days’ notice to state why its licence should not be cancelled with another 30 days given in July 2023.

The order said the bank requested four to six months to finalise the divestment process and that they could not provide the bank guarantees required to secure KAEDC’s market obligation.

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