NIGERIA: Stakeholders React to AEDC Change of Management Reports

  • Stakeholders react to AEDC Management’s suspension.

The recent suspension of the Board and Management of Abuja Electricity Distribution Company (AEDC) has generated discussions among stakeholders. On Monday, the Staff Union had embarked on a strike action resulting in blackout across AEDC’s operation areas in the Federal Capital Territory (FCT), Kogi, Nassarawa and Niger states. In addition, the Union accused the utility of failure to pay staff entitlements for at least 12 months. After an agreement was reached late Monday night, on Tuesday, it was reported that the Federal Government (FG) suspended the Management of the AEDC and appointed an Interim Governing Council.

However, The Ministry of Power, NERC and the Bureau of Public Entreprises released statements indicating that the change in leadership resulted from company-related ownership scruffles amidst loan servicing. 

Speaking on the reported news, the former Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sam Amadi, stated that the President has no such powers to suspend the Management of the AEDC. “Even if the federal government has a 40 per cent minority share in the assets, those shares are held for it by the Bureau public Enterprises that it has a position on the (firm’s) board. So the best we can do is use the board membership to push policies to change.” Amadi said.

“And the fact that the federal government has the power of sovereign doesn’t change the fact that the only way you can protect public interest in the sector is through the regulation. Any other action will appear like nationalising back those assets,” he added.

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