Electricity: Two firms tussle over Kano Disco ownership

There is controversy over the purported sale of Kano Electricity Distribution Company, as two companies are laying claim to be the rightful winners of a bid to buy the power firm.

IPowercom and Future Energies Africa are currently laying claim to KEDC, a development that is causing controversy in the power sector, particularly as it affects the Disco.

In July 2022, the Federal Government listed KEDC as one of the worst-performing Discos among the 11 power distributors in Nigeria and thereafter made moves to resell the Disco to new owners.

But two companies are currently claiming that they duly satisfied all the statutory requirements to own the power company.

It was gathered that the ownership of the 60 per cent shares in contention in Kano Disco had been handed over to Powercom, but Future Energies contested this.

It argued that it acquired the Disco after emerging winner of a bidding process conducted by Fidelity Bank and was issued a ‘No Objection’ certificate by the Bureau of Public Enterprises.

It was also gathered that Future Energies recently got reprieve at the Federal High Court in Lagos, which restrained the defendants from considering, accepting, approving, or naming Powercom or any other investor as a new core shareholder in KEDC or conducting or recognising any other bidding process for the sale of Sahelian’s 60 per cent shares in the company.

The defendants include the Nigerian Electricity Regulatory Commission, BPE, Sahelian Power SPV Limited (in Receivership), Patrick J.N. Ikwueto (SAN) in his capacity as receiver manager of Sahelian Power, Fidelity Bank, KEDC Plc and Power Com Smartgrid Nigeria Limited.

The company’s position came days after Powercom announced it had acquired a 60 per cent stake in Kano Disco.

NERC also stated in an advertorial that it had received a request for ‘No Objection’ from the receiver manager appointed by Fidelity Bank for the acquisition of the said 60 per cent equity holding in KEDC by Powercom.

But speaking with journalists in Lagos, Future Energies through its representative, Adam Ibrahim, insisted that it had satisfied all the conditions to be awarded the 60 per cent ownership. Officials at NERC stayed mute when contacted about the issue in Abuja.