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The Nigerian Electricity Regulatory Commission has announced the suspension of the Board of Directors and other key management staff members of the Ibadan Electricity Distribution Company on account of the firm’s default in the recovery of an inappropriate shareholder loan of N6bn granted to Integrated Energy Distribution and Marketing Group Limited by the Disco.
The IEDMG is the core investor in the IBEDC following the privatisation of the electricity distribution companies by the Federal Government in November 2013. The commission stated that the suspension of the board of directors of the IBEDC was enforced through its Order No. NERC/181/2018 of June 19, 2018.
It explained that the loan was granted by the IBEDC from funds released to all power distribution companies by the Central Bank of Nigeria under the Nigeria Electricity Market Stabilisation Fund for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses. The commission had earlier slammed a fine of N50m on the IBEDC, which was communicated to the Disco on September 18, 2017.
Photo Caption: NERC LOGO
