- AMCON has stated that the Ibadan Electricity Distribution Company (IBEDC) could become profitable if sold to a financially strong.
- AMCON, which acquired IBEDC in January 2022 due to insolvency, continues efforts to resolve its challenges and is optimistic about the company’s potential under new ownership.
The Asset Management Corporation of Nigeria (AMCON) has announced that the Ibadan Electricity Distribution Company (IBEDC) could become profitable if it attracts a viable buyer. This statement underscores AMCON’s belief that finding the right investor is crucial for improving the efficiency of the power sector and ensuring a reliable electricity supply, which is essential for economic growth.
On August 26, 2024, during an interactive meeting with media executives in Lagos, AMCON’s Managing Director and Chief Executive Officer, Gbenga Alade, elaborated on the situation. Alade explained that shortly after assuming his role, he assessed the challenges facing AMCON and identified the power sector, particularly IBEDC, as needing significant intervention.
Alade highlighted that AMCON’s efforts to address the issues with IBEDC are ongoing, but progress is being made. He emphasised that economic development cannot be achieved without a dependable electricity source. The corporation acquired IBEDC in January 2022 due to its financial insolvency, following a court ruling in September 2021 that appointed AMCON as receiver/manager of Integrated Energy Distribution and Marketing Limited, along with preservation orders.
The AMCON head pointed out that attracting investors with substantial financial resources is critical to resolving the challenges facing IBEDC. “In the power sector, we have Ibadan DisCo, under AMCON. We’ve tried as much as possible to get that resolved. And we’re in the process. We are yet to conclude the sale, but we are making excellent headway in resolving Ibadan DisCo,” Alade said.
He noted that IBEDC covers several states, including Ogun, which has industrial areas and expressed optimism that the company would be profitable once it is sold. This follows an order issued by Power Minister Adebayo Adelabu in April for selling electricity distribution companies (DisCos) whose original owners had defaulted on loans and were subsequently taken over by banks and AMCON.
Currently, AMCON and various banks oversee four DisCos. Besides IBEDC, United Bank for Africa manages the Abuja Electricity Distribution Company, while Fidelity Bank oversees the Benin, Kaduna, and Kano DisCos. These DisCos were handed over to AMCON and the banks due to their failure to repay loans.
In addition, Alade mentioned that AMCON had recently completed a power project in Kaduna state, which is expected to impact the power sector positively. This initiative forms part of AMCON’s broader strategy to enhance the stability and efficiency of Nigeria’s electricity supply system.