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.
Aliyu 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.
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