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AMCON takes over Ibadan DisCo

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ASSETS Management Corporation of Nigeria (AMCON) has explained that it took over control of Ibadan Electricity Distribution Company (IBEDC) Limited over inability of the DisCo to clear its acquisition loan from Polaris Bank.

  After a court ruling empowering AMCON to take over the asset, IBEDC came under receivership on Thursday, January 20.

IBEDC distributes electricity to consumers in Oyo, Osun, parts of Kwara, Ondo, Ekiti States.

  The Disco was acquired by Integrated Energy Distribution and Marketing Limited (IEDML), the same firm that acquired Yola DisCo, all during the 2013 power sector privatisation exercise.

AMCON in a public notice stated that it had appointed Mr Osayaba Giwa-Osagie SAN to take over the entire undertakings.

AMCON said it executed the takeover of IEDM following a default in a Loan Servicing Agreement executed with Polaris Bank.

“AMCON has pursuant to Section 48 and 61 of AMCON Act 2010 been appointed Receiver/Manager over all the Assets of Integrated Energy Distribution and Marketing Limited as stipulated in the instruments executed in favour of AMCON by virtue of the Loan Purchase and Limited Servicing Agreement executed with Polaris Bank Limited dated 30th November, 2018, and a Notice of Appointment of the Receiver/Manager, dated August 6th, 2021, which was duly stamped by the Commissioner for Stamp Duties” the statement read.

  The Nigerian Electricity Regulatory Commission (NERC) had previously fined IBEDC N50 million for” its failure to secure a refund of an interest free loan the Board of IBEDC granted to its core investor group.”

  Confirming the takeover to the members of staff, the Chief Operating Officer of the IBEDC, Mr John Ayodele, in a memo to the workers of the company on the development, called for calm and prayers.

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