Future Energies Africa has officially taken over the operations of the Kano Electricity Distribution Company after obtaining a court order to halt the sale of the company to another entity by the federal government.
This development was announced in a statement released by KEDCO’s Head of Corporate Communications, Sani Bala Sani on Wednesday.
The statement reads, “Management is pleased to announce that Future Energies Africa Limited has completed the acquisition of KEDCO as its new core investor.
“The new board, led by its chairman, Engr. Adamu Ibrahim Gumel, arrived at the KEDCO headquarters today, Tuesday, November 2, 2023, to complete the takeover process and familiarise themselves with the management and staff.”
The statement clarified the circumstances of the takeover, explaining that the Nigerian Electricity Regulatory Company had received a request for “No Objection” confirmation from the Receiver Manager appointed by Fidelity Bank.
This request was related to the acquisition of a 60% equity stake in KEDCO by Powercom Smart Grid Nigeria Limited, as well as an interest in acquiring a similar stake in the Kaduna Electricity Distribution Company.
However, FEA, represented by its legal counsel, sought an injunction from a Federal High Court in Lagos to prevent the Nigerian Electricity Regulatory Commission, the Bureau of Public Enterprises, Sahelian Power SPV Limited (in receivership), Patrick J.N. Ikwueto SAN (in his capacity as receiver manager of Sahelian Power), Fidelity Bank, Kano Electricity Distribution Company Plc., and Powercom Smartgrid Nigeria Limited from considering, accepting, approving, or naming Powercom or any other investor as a new core shareholder in KEDCO.
According to the statement, this action was taken because FEA claimed to have already acquired KEDCO after emerging as the winner of a bidding process conducted by Fidelity Bank and being issued a ‘No Objection’ certificate by the Bureau of Public Enterprises.
Chairman Engr. Adamu Ibrahim Gumel expressed his vision of making KEDCO one of the leading distribution companies in the country.
He also mentioned plans to address the challenges faced by KEDCO by implementing a modernized electricity distribution system to enhance service delivery, create a customer-friendly atmosphere, and reduce ATC&C losses to improve operational efficiency.
