FEA takes over operations of Kano electricity distribution company

Future Energies Africa (FEA) has announced its takeover of the Kano Electricity Distribution Company (KEDCO) after instituting a court order to halt its sale to another company by the federal government.

KEDCO made this known in a statement signed by its Head of Corporate Communications, Sani Bala Sani, on Wednesday, saying FEA has completed the acquisition of the company as its new core investor.

According to the KEDCO disclosure, “The Nigerian Electricity Regulatory Company (NERC) had in August said it received a request for ‘No Objection’ confirmation from Receiver Manager appointed by Fidelity Bank for the acquisition of 60 per cent equity holdings in Kano Electricity Distribution (KEDCO) by Powercom Smart Grid Nigeria Limited (PSGN) “via a letter dated June 27, 2023, and the PSNL indicated an interest in acquiring 60 per cent equity holdings in Kaduna Electricity Distribution Company (KAEDCO).

“But FEA, through its lawyer, approached a Federal High Court in Lagos and issued an injunction restraining the defendants—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 or conducting or recognising any other bidding process for the sale of Sahelian’s 60% shares in the Kano Electricity Distribution Company.”

This was due to FEA saying it had already acquired Disco after it emerged as the winner of a bidding process conducted by Fidelity Bank and was issued a ‘No Objection’ certificate by the BPE.

But KEDCO, in a statement, said FEA has completed the acquisition of the company as its new core investor.

“Management is pleased to announce that Future Energies Africa (FEA) 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 board chairman, while addressing staff, shared his vision of making KEDCO one of the leading discos in the country.

He also hinted at plans to address challenges faced by KEDCO by creating a modernised electricity distribution system that will enhance service delivery, create a friendly customer atmosphere, and reduce ATC&C losses for improved operational efficiency.

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