This takeover comes after the Nigerian Electricity Regulatory Commission (NERC) last July appointed a new management for the KEDCO. The appointment followed the Nigerian government’s restructuring of five electricity distribution companies (DisCos) following Fidelity Bank’s takeover of three DisCos.
KEDCO’s board of directors was subsequently dissolved.
The PSGN, a wholly indigenous utility solutions company, announced the commencement of a wide-ranging re-positioning agenda for KEDCO.
“The phased corporate makeover agenda will imbue KEDCO with the capacity to become the reference point for operational efficiency and service excellence in Nigeria.
“With the support of our global partners, who are reputed for groundbreaking innovation and technology, this strategic intervention will ensure a visible improvement in the operations, performance and efficiency of KEDCO, resulting in value creation for its various stakeholder groups, especially the customers within the KEDCO infrastructure network.
“Specifically, PSGN’s intervention is designed to deliver 24 hours of uninterrupted power supply within a short period, optimise operational and safety performance, improve customer service and experience, reduce ATC&Cs and enhance the company’s overall system reliability.
“With this announcement, PSGN seeks the cooperation and collaboration of all stakeholders for an improved utility service delivery and welcomes initiatives that could strengthen its vision of lifting KEDCO into a world-class energy distribution company,” PSGN said.
Electricity staff union disagrees
In response to the takeover, the Senior Staff Association of Electricity and Allied Companies (SSAEC), in a statement co-signed by its President General, Chika Benedict and General Secretary, Nnamdi Ajibo, said the takeover was marred by illegality, and they were not involved in the process.
The electricity staff union stated this in a letter to the Director General Bureau of Public Enterprise dated 24 July.
“The attention of the leadership of the Association has been drawn to the purported sale of KEDCO to Powercom smart grid Nigeria via a press release by its public relations department dated 12th July 2023.
“As critical stakeholders, we are dismayed that such an epoch-making transaction was consummated without our input. Let it be on record that the association demand a new service-level agreement to be signed by the workers before any takeover takes place.
“We believe very strongly that the sale of critical infrastructure such as an electricity company should have been made public to create awareness (among) the staff and customers, but it was not the case in this regard.
“In the light of this foregoing. We hereby request that a meeting of stakeholders be convened immediately for an assurance of the job security of our members and by the new owners and if otherwise. Their benefits have to be fully negotiated in line with the existing conditions of service of the company, the union leaders said.