AMCON Calls for Sale of Ibadan Electricity Distribution Company

The Assets Management Corporation of Nigeria (AMCON) has stated that the only path to enhancing the efficiency of the Ibadan Electricity Distribution Company (IBEDC) is to sell it to financially capable investors. This was announced by AMCON’s Managing Director and Chief Executive Officer, Gbenga Alade, during an interactive session with media executives in Lagos on Monday.

Alade explained that since taking office five months ago, he has reviewed various cases involving AMCON, with the power sector emerging as a significant area of focus. He emphasised that no economy can thrive without a stable power supply, underlining the importance of resolving issues in the electricity distribution sector.

“Since taking over the IBEDC in January 2022 due to insolvency, AMCON has been managing the company. However, we believe that the best way to ensure its efficiency and effectiveness is to hand it over to investors with substantial financial resources,” Alade stated.

The takeover of the IBEDC by AMCON followed a court ruling in September 2021 that granted preservative orders in favour of AMCON, which serves as the receiver/manager for Integrated Energy Distribution and Marketing Limited, the parent company of IBEDC.

During the session, Alade expressed optimism about finding suitable investors to revitalise the company, highlighting that the sale process is already underway. “We’re making significant progress in resolving the situation with Ibadan DisCo,” he said. “IBEDC, which is one of the largest distribution companies in the country, spans several states, including the industrial areas of Ogun State. It has great potential if sold to investors who are prepared to inject capital and expertise.”

Alade stressed the importance of selling to investors who are not only willing to purchase the company but also committed to investing in its infrastructure and operations. “We need people who have the means to invest in making the company more efficient and effective. This is essential for the overall improvement of the power sector,” he added.

This call for viable investors aligns with the directive issued by the Minister of Power, Adebayo Adelabu, in April, which ordered the sale of distribution companies taken over by banks and AMCON from their original investors due to financial difficulties. Currently, four distribution companies, including IBEDC, are under the management of banks and AMCON due to their inability to repay loans. The other companies include the Abuja Electricity Distribution Company, managed by United Bank of Africa, and the Benin, Kaduna, and Kano DisCos, managed by Fidelity Bank.

In addition to addressing the issues with IBEDC, Alade mentioned that AMCON has also made strides in other areas of the power sector. He noted that the corporation has recently signed a memorandum of understanding to resume work on the Kaduna power project, which had been stalled for several years. “We’re committed to pushing forward with projects that can make a real difference in the power supply across the country,” he concluded.