. CEO Yusuf Yahaya resigns
By Stanley Onyekachi
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Board of Directors, Kaduna Electricity Distribution Company (Kaduna Electric), over failure to settle about N110 billion debt owed to the Nigerian Electricity Supply Industry (NESI) and inability to find a new buyer on time.
The Order, dated January 1, 2024, was signed by the Chairman and Vice Chairman, NERC, Sanusi Garba, and Musiliu Oseni, respectively.
The Order reads in part: “All directors of KAEDC are hereby removed from office and the Board of Directors stands dissolved in the exercise of powers vested in the Commission by Section 75 of the Electricity Act (EA).”
The Board dissolution comes ahead of the resignation of the DisCo’s Managing Director Yusuf Yahaya, on Saturday.
The Commission explained that the N110 billion owed to the Nigerian Bulk Electricity Trading (NBET), and the Transmission Company of Nigeria (TCN’s) Market Operator (MO) from 2015 to date.
According to the Order, Kaduna Electric would in the interim be run by an administrator.
“The administrator shall be the de facto chief executive officer of KAEDC and shall be responsible for the management of the day- to-day affairs of the utility pending the finalisation of the sale of the undertaking to a new core investor.
“The administrator shall work with a team of special directors that shall constitute non-executive directors of the board for governance purposes.
“The following are hereby appointed as special directors for KAEDC: Alex Okoh, Chairman; Kabir Adamu, Sharfuddeen Zubair Mahmoud, John Ayodele, and Rahila Thoma,” it said.
NERC also informed that it would constitute the executive management team that would work with the administrator in due course.
“The Commission shall administer the sale of the undertaking in accordance with the provisions of the EA on the basis of the highest and best price offered for the undertaking,” it said.
Recall that Kaduna Electric was among the five electricity distribution companies (DisCos) that underwent receivership after core investors, unable to repay borrowed funds used for acquisition during privatization in 2013, were taken over by their funders.
The receivership, led by Afrexim Bank, had been given notice to explain why its license should not be canceled, with an additional 30 days granted in July last year.
The bank requested four to six months to finalize the divestment process but could not provide the required bank guarantees for KAEDC’s market obligation.
Accordingly, the order stated that the company’s failure to secure new owners and meet its financial obligations would result in the removal of its directors.
The Commission shall administer the sale of the undertaking in accordance with the provisions of the EA on the basis of the highest and best price offered for the undertaking.
Yahaya’sresignation
Meanwhile, Kaduna Electric has announced the resignation of Yusuf Usman Yahaya as the Managing Director/Chief Executive Officer of the Company.
A statement by the Company’s spokesperson, Abdulazeez Abdullahi, recalled that Mr Yahaya was appointed in July 2022.
It explained that the appointment was in furtherance of concerted efforts by stakeholders, including NERC, Bureau of Public Enterprises (BPE), Central Bank of Nigeria (CBN), African Export-Import Bank (Afrexim), and Fidelity Bank for intervention in Kaduna Electric alongside other selected DisCos in Nigeria.
According to the statement, Mr Yahaya led and executed a decisive turnaround programme to effect critical people and organizational reform, accomplish commercial growth, and enhance service delivery to our customers aided by extended investments in network and energy management infrastructure.
“Kaduna Electric wishes to convey its gratitude to Engr Usman Yahaya for his leadership and management in initiating much-needed corporate turnaround of the company and extends our best wishes in his next endeavours,” it said.
Yahaya’s farewell
In his farewell message to the company on Friday, Mr Yahaya said: “I am moving on from Kaduna Electric. When I was appointed about 18 months ago, it was at a time of critical lows…” when the utility company was under receivership.
“The intervention was intended for six months, and we have stayed for much longer given unforeseen challenges around the intervention objectives and very difficult persistent circumstances.
“In the time since then, we have taken on the challenges by addressing corporate reform and turnaround spanning infrastructure revamp across our network in Kaduna, Kebbi, Sokoto and Zamfara States, enhancing commercial performance, improving the balance sheet of the company and delivering improved services to our customers.
“In the course of these, we also sought to enhance the terms and working conditions of our most prized asset employees.”
Despite very limited investments and daunting environmental socio-economic challenges, Mr. Yayaha insisted that Kaduna Electric had accomplished so much with great potential ahead.
“As my tenure has come to an end at Kaduna Electric, I am moving from the company as stakeholders carry on the pending task of the sale of core investor interests in aid of the steady ownership and critical investments that are desperately needed. I thank you all for our time and work together,” he said.
