The United Bank for Africa (UBA) is in control of majority stakes in the Abuja Electricity Distribution Company Plc (AEDC), which led to changes in the management structure of the company.
Minister of Power, Engr Abubakar Aliyu, made this explanation following media reports that President Muhammadu Buhari had sacked the AEDC management over staff strike.
Aliyu, in a statement on Wednesday, said, “The Ministry wishes to notify all stakeholders that the AEDC has of recent been facing significant operational challenges arising from a dispute between the core investors (KANN consortium) as owners of 60% equity in AEDC and the UBA as lenders for the acquisition for the majority shareholding in the public utility.
“The situation has currently deteriorated due to lack of access to intervention lending to a point whereby legitimate entitlements of the staff are being owed thus leading to service disruptions on 6th December 2021 within its franchise area.
“The Federal Ministry of Power has since taken the initiative to engage organised labour and electricity service has since been restored in the FCT and the states served by AEDC.
“The UBA, as a lender, and in exercising its rights over the shares of KANN Consortium in AEDC, has taken over the shares of the obligor in the AEDC. This takeover of the majority stake in AEDC by UBA has consequently led to the reported changes in the management of AEDC.”
