Assessing Current Crisis Of Power Sector After Banks’ Take-over

Organized Labour in the nation’s Electricity sector has issued a strike notice to the Federal Government, rejecting the take-over of some Electricity Distribution Companies, DisCos, by banks among others.


In a 14 day ultimatum to the Federal Government through the Ministers of Power, Labour and Employment among others, dated July 7, 2022, the Organized Labour contended that “It is obvious that the owners of these DisCos would not have obtained loans from Banks with the DisCos as collateral Pre-Privatization and there is no way the Banks will seize DisCos, GenCos or any other Company before take-over under the pretence that they were indebted to them.”

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Meanwhile, the Federal Government through the Permanent Secretary, Ministry of Power, in a response letter dated July 20, among others, explained that the recent change in the equity ownership of some of the Electricity Distribution Companies (DisCos) was a lender action, stepping in to take over the shares of the associated core investors largely as a result of failure to honor debt obligations.


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