Tug of war: Powercom, Future Energies Africa Battle Over Kano Electricity Distribution Company
- Two companies are currently at loggerhead over the ownership of Kano Disco
- Powercom claims it achieved ownership by the acquisition of 60% of the company
- Future Energies claims it bought the Disco after winning a Fidelity Bank auction
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Two businesses, Powercom and Future Energies Africa are claiming to be the legitimate winners of a bid to purchase the Kano Electricity Distribution Company, hence there is uncertainty around the alleged sale of the power company.
Legit.ng had reported that there are 11 electricity distribution companies operating in Nigeria.
The Federal Government earlier identified KEDC as one of Nigeria's 11 power distributors with the lowest performance in July 2022. As a result, efforts were initiated to find new owners for the Disco.
However, the two businesses are currently asserting that they have properly complied with all legal requirements to own the electricity company.
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Both parties claim ownership
According to Punch, it was gathered that Powercom had acquired ownership of the 60% of Kano Disco shares that were under dispute, but Future Energies disputed this.
It claimed that it bought the Disco after winning a Fidelity Bank auction and receiving a "No Objection" certificate from the Bureau of Public Enterprises.
Additionally, it was learned that Future Energies recently won a stay of execution at the Federal High Court in Lagos, which barred the defendants from considering, accepting, approving, or designating Powercom or any other investor as a new core shareholder in KEDC, as well as from holding or recognising any other bidding processes for the sale of Sahelian's 60% of the company's shares.
BPE, Fidelity Bank, KEDC Plc, Power Com Smartgrid Nigeria Limited, Sahelian Power SPV Limited (in Receivership), Patrick J.N. Ikwueto (SAN) in his position as Sahelian Power's receiver manager, the Nigerian Electricity Regulatory Commission, and Sahelian Power SPV Limited are among the defendants.
Days after Powercom revealed it had bought a 60% share in Kano Disco, the business stated its position.
Additionally, NERC reported in an editorial that it had received a "No Objection" request from the receiver manager chosen by Fidelity Bank for the purchase of the aforementioned 60% ownership stake in KEDC by Powercom.
But in an interview with media in Lagos, Future Energies asserted that it had met all the requirements to be granted the 60% ownership through its representative, Adam Ibrahim. When asked about the situation in Abuja, NERC representatives remained silent.
The tussle is coming on the back of plans by Discos across Nigeria to review the current electricity tariff by about 40% hike.
DisCos consider dropping proposed electricity tariff hike to 25% amid NERC approval delay
Legit.ng earlier reported that Electricity distribution companies (DisCos) in Nigeria may eventually settle for a 25% hike in electricity tariff if the National Electricity Regulatory Commission (NERC) and other stakeholders refuse to agree to a 40% increase.
This is according to a source who spoke with Legit.ng following a series of negotiations that have been ongoing
Source: Legit.ng
