NERC DISSOLVES KADUNA DISCO'S BOARD OVER DEBT NON-PAYMENT: INSIGHTS FROM JOURNALIST OKECHUKWU NNODIM

The Nigerian Electricity Regulatory Commission (NERC) recently announced the dissolution of the board of directors of Kaduna Electricity Distribution Company due to the company's inability to settle a substantial debt owed to the Nigeria Electricity Supply Industry.

On Monday, the Nigerian Electricity Regulatory Commission (NERC) announced the dissolution of the board of directors of Kaduna Electricity Distribution Company due to the Disco's inability to pay a debt of N110 billion owed to the Nigeria Electricity Supply Industry. This decision was conveyed in a regulatory order dated January 1, 2024, and signed by the Chairman and Vice Chairman of NERC, Sanusi Garba and Musiliu Oseni, respectively.

 

Kaduna Disco is one of five Discos that were taken over by their promoters after the core investors failed to repay the borrowed funds used to acquire the company during privatization in 2013. The Federal Government had previously announced the planned takeover of Kano, Benin, and Kaduna electricity distribution companies by Fidelity Bank Plc, and the Bureau of Public Enterprises had obtained approval from NERC to appoint an interim managing director for the distressed power firm.

 

Following the announcement, industry operators revealed that Kaduna Disco had been facing liquidity challenges, leading to the dissolution of its board by NERC. The firm's Managing Director, Yusuf Yahaya, had also announced his resignation from the company.

 

In its order released on Monday, NERC stated that Kaduna Disco owed N110 billion to the Nigerian Bulk Electricity Trade and the Market Operator of the Transmission Company of Nigeria from 2015 till date. The commission appointed Umar Hashidu as the administrator of Kaduna Disco and outlined the responsibilities and composition of the new management team.

 

Subsequently, Kaduna Disco announced the resumption of duty of its new CEO, Umar Hashidu, who took over from the former boss during a handover ceremony presided over by a NERC Commissioner. The new CEO was charged to harness the talent and resources available to him to take Kaduna Electric to greater heights.

 

Okechukwu Nnodim, a journalist with Punch Newspapers, provided this information and has 15 years of experience covering various sectors, including Energy, Finance, Agriculture, and more.


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