BEDC Board Tussle: NERC Clarifies Position, Backs New Board

The Nigerian Electricity Regulatory Commission (NERC) has clarified its position on the newly appointed Board and management for the Benin Electricity Distribution Company (BEDC), saying that the interim management led by Henry Ajagbawa as Managing Director is the only statutory recognized.

The Commission said: “BEDC is a distribution licensee of NERC and by virtue of powers vested in the Commission by the Electric Power Sector Reform Act (“EPSRA”), regulatory instruments issued pursuant to EPSRA and the terms and conditions of the licence issued to BEDC; NERC is the primary authority that is vested with powers to statutorily recognise the board/management of BEDC as an operator in the Nigerian Electricity Supply Industry (“NESI”).

In a statement by the NERC’s management, it warned the public to disregard earlier public notices purportedly issued by one Mr. Lucky Ayomoto on behalf of the ertswhile board/management of BEDC Electricity Plc (“BEDC”}.

According to NERC, “The general public may wish to note that BEDC is jointly owned by private investors with Vigeo Power Ltd holding an equity of 60% and 40% being held by BPE on behalf of the Federal and State Governments. One of the shareholders in Vigeo Power Ltd, Vigeo Holdings Ltd, subscribed to its shares vide a loan from Fidelity Bank Ltd. In the light of a default in servicing the said loan, the bank has exercised its rights to repossess these shares that were provided as security for the acquisition loan.

“Upon repossession of shares of Vigeo Holdings Ltd by the bank, an application was filed by the Banks and the Bureau of Public Enterprises (“BPE”) with the Commission for the approval of an interim board of directors and management for BEDC in compliance with NERC’s business continuity arrangements for licensees.

“The Commission reviewed and approved Messrs Henry Ajagbawa, K.C Akuma, Adeola ljose, Charles Onwera and Yomi Adeyemi as interim board of directors for BEDC with Mr. Henry Ajagbawa as Managing Director.

“The Commission notes that the erstwhile management of BEDC challenged the appointments in court after the regulatory and shareholder interventions had been completed.

“The actions taken by the contending parties for the control of BEDC has been primarily unsettling for end-use customers in Edo, Ekiti, Delta and Ondo States that are reasonably concerned about continuity of their service and other NESI stakeholders that are concerned about BEDC’s ability to meet its obligations to the market.

“The Commission has a statutory responsibility to the electricity market and this responsibility which is exercised in the public interest outweighs any perceived private interests.

“The general public is hereby advised to note that the interim board comprising of Messrs Henry Ajagbawa, K.C Akuma, Adeola ljose, Charles Onwera and Yomi Adeyemi are the only directors of BEDC recognised by the Commission.”

NERC urged all stakeholders and members of the general public to provide the required support to the interim board of directors as they work on ensuring continuity of service to end-use customers in the BEDC network area.