AMCON plans to sell the Ibadan Electricity Distribution Company (IBEDC) to financially strong investors to enhance its efficiency and improve Nigeria's power sector. The sale follows AMCON's 2022 takeover due to insolvency. The move aims to attract investors capable of significant financial commitments, ensuring better electricity distribution across key regions.
The Assets Management Corporation of Nigeria (AMCON) has announced plans to sell the Ibadan Electricity Distribution Company (IBEDC) to investors capable of significantly improving its efficiency. According to AMCON Managing Director/CEO, Gbenga Alade, this move is crucial to stabilizing Nigeria's power sector, as no economy can grow without a reliable power supply.
Alade, speaking at a media briefing in Lagos, highlighted that resolving the issues surrounding IBEDC has been a priority since he assumed office five months ago. Although AMCON has made progress, the sale is yet to be finalized. The corporation took over IBEDC in January 2022 due to insolvency, following a court ruling in September 2021 that placed the company under AMCON's management.
Alade emphasized that IBEDC, which covers several states, including Ogun's industrial areas, would be more effective if managed by investors with substantial financial resources. This approach, he believes, will contribute to the overall improvement of Nigeria's power sector.
Additionally, AMCON is involved in reviving the abandoned Kaduna power project, with work already underway following a recent memorandum of understanding. The sale of IBEDC is part of a broader initiative to privatize underperforming power distribution companies, as previously directed by the Minister of Power, Adebayo Adelabu. Four DisCos, including IBEDC, are currently managed by banks and AMCON due to their inability to repay loans.
The planned sale aims to attract serious investors capable of making the necessary financial commitments to enhance Nigeria's power infrastructure.
