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Fidelity Bank takes over Kano, Benin and Kaduna Discos

Nigerian government says Fidelity Bank Plc has commenced plans to finalise the takeover of Benin, Kano, and Kaduna electricity distribution companies (DisCos).

Sanusi Garba, chairman, of the Nigerian Electricity Regulatory Commission (NERC), and Alex Okoh, director-general, the Bureau of Public Enterprises (BPE), said this in a statement on Tuesday.

The action followed the activation of collateralised shares of the DisCos by Fidelity Bank and African Export-Import Bank (Afreximbank).

The statement was titled, “Restructuring of Kano, Benin, Kaduna, Ibadan and Port Harcourt DISCOs”.

“Today, we were informed by Fidelity Bank that they have activated the call on the collateralized shares of Kano, Benin, and Kaduna (Fidelity and AFREXIM) DISCOs and that they have initiated action to take over the Boards of these DISCOs and exercise the rights on the shares,” the statement reads.

It said Fidelity Bank’s action was a contractual and commercial intervention, following an agreement between the core investors in the DISCOs and the lender.

“BPE is involved because of the 40% shareholding of government in the DISCOs,” the statement added.

It said Fidelity Bank informed BPE and NERC that the new board members of the Kano DISCo were Hasan Tukur, chairman; Nelson Ahaneku, member and Rabiu Suleiman, member, according to the statement.

In the interim, NERC and BPE said they met on an emergency basis and “activated the Business Continuity Process and have appointed interim Managing Directors in the affected DISCOs”.

SourceNERC

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