Nigerian Electricity Regulatory Commission (NERC) has suspended the Board of Directors and other key management staff of Ibadan Electricity Distribution Company (IBEDC) on account of the company’s default in the recovery of an inappropriate shareholder loan of N6billion grant.
NERC in a statement noted that the suspension was in line with NERC order No NERC/181/2018 of June 19th 2018 on account of the company’s default in the recovery of shareholder loan of N6billion granted to Integrated Energy Distribution and Marketing Group (IEDMG) Ltd by the utility.
IEDMG is the core investor in IEBDC following the privatisation of electricity distribution companies by the Federal Government.
According to NERC, the loan was granted by IBEDC from funds released to all DisCos by the CBN under the Nigeria Electricity Market Stabilisation Funds (NEMSF) for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.
The Commission had earlier fined IBEDC a sum of N50million on the 18th September 2017 for non-compliance with Order No NERC/173/2017 directing the company to fully recover the outstanding sum of N5.7bn being the balance of the loan granted by the utility to IEDMG.