The Nigerian Electricity Regulatory Commission, NERC, Tuesday, announced the suspension of the Board of Directors of Ibadan Electricity Distribution Company, IBEDC, over default in the recovery of N6 billion loan.
Recall that the IBEDC got the N6 billion granted to Integrated Energy Distribution and Marketing Group, IEDMG, Ltd by the Central Bank of Nigeria, CBN, under the Nigeria Electricity Market Stabilisation Funds, NEMSF, only to be wrongly diverted for other purposes.
Irked by the development, NERC had earlier fined IBEDC N50 million for non-compliance to directive to fully recover the outstanding sum of N5.7 billion, being the balance of the loan granted to IEDMG.
The NERC, in a statement by Mrs Vivian Mbonu, its Head, Media Unit, in Abuja, said the suspension order affected other key management staff of the distribution company.
The statement read, “The Nigerian Electricity Regulatory Commission, NERC, has, vide its Order No NERC/181/2018 of June 19, 2018, suspended the Board of Directors and other key management staff of Ibadan Electricity Distribution Company, IBEDC, on account of the company’s default in the recovery of an inappropriate shareholder loan of N6 billion granted to Integrated Energy Distribution and Marketing Group, IEDMG, Ltd by the utility.
“IEDMG is the core investor in IEBDC, following the privatisation of electricity distribution companies by the Federal Government.
”The loan was granted by IBEDC from funds released to all DISCOs by the CBN under the Nigeria Electricity Market Stabilisation Funds, NEMSF, for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.
“The commission had earlier fined IBEDC a sum of N50million on September 18, 2017, for non-compliance with Order No NERC/173/2017 directing the company to fully recover the outstanding sum of N5.7 billion being the balance of the loan granted by the utility to IEDMG.”
