The United Bank for Africa has taken over the ownership of the Abuja Electricity Distribution Company.
This was confirmed in a statement by the Minister of Power, Engr. Abubakar Aliyu, a copy of which was made available to the NPO Reports on Wednesday.
The minister said Tuesday’s announcement by the Presidency of the sack of the management of the power distribution company was occasioned by the take over by UBA being the lender to the consortium, KAAN which has 60% stake in the company.
The statement said the company failed to meet its obligations to employees leading to service disruptions in Abuja and other states where the company serves customers.
The Minister added that the government had to be proactive by engaging the services of the organized labour to restore service while further remedial actions are taken.
The minister added that the company was facing operational challenges which appeared to have overwhelmed it.
The minister said the attention of his ministry of has been draw to publications in the print and electronic media relating to recent changes in the ownership structure and management of the Abuja Electricity Distribution Company Plc (AEDC).
He said, “While noting that the news has largely been communicated out of context, the Ministry wishes to notify at 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 finances leading 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 organized labout and electricity service has since been restored in the FCT and the states served by AEDC.”
He said the UBA exercised it’s right over the shares of the KANN Consortium in AEDC, taking over the shares of the obligor in the AEDC.
The statement added “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 shareholding 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).”
