During a media briefing in Lagos on Monday, AMCON's Managing
Director and CEO, Gbenga Alade, shared insights from his five-month review of
the corporation's cases, highlighting the challenges within the power sector.
Alade emphasized that a stable power supply is essential for
economic growth and progress.
He acknowledged AMCON's ongoing efforts to address the
issues plaguing IBEDC, although the resolution process remains incomplete.
AMCON assumed control of IBEDC in January 2022 due to its
insolvency, following a court ruling in September 2021 that granted AMCON
receiver/manager status for Integrated Energy Distribution and Marketing
Limited.
Alade revealed that the distribution company would be sold
to investors with substantial financial resources.
He stated, "We are actively working on resolving the
situation with Ibadan DisCo, and while the sale is not yet finalized, we are
making significant progress."
He expressed confidence that IBEDC could become profitable
post-sale, given its operations across various states, including the industrial
regions of Ogun.
“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.
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 Discos are under the management of banks and
AMCON.
Aside from the IBEDC, the Abuja Electricity Distribution
Company is under the management of the United Bank of Africa, while Fidelity
Bank manages Benin, Kaduna, and Kano DisCos.
The four Discos are under these new managements due to their
inability to repay their loans to the financial institutions.
To bolster the power sector, the AMCON boss noted that the
corporation has completed a power project in Kaduna State.
“We also looked at the Kaduna power project as well, which
has been abandoned for a few years. By God’s grace, we were able to sign an MoU
with the project people. Work has already started on that project as well,” he
maintained.