The state governments of Edo, Delta, Ondo, and Ekiti collectively have taken a formal step to communicate with the Nigerian Electricity Regulatory Commission (NERC), signaling their intention to assert their shareholder rights in the Benin Electricity Distribution Company (BEDC), which is a response to the “operational challenges and failures in service delivery” within their respective states.
In a unified correspondence addressed to Engr. Sanusi Garba, the Chairman of NERC, dated March 18, the initiative launched by the states represents a pivotal move to address longstanding discrepancies stemming from the privatization process of 2013.
It was revealed that the direct shareholdings of Delta and Edo State in BEDC is 14% and 8.4% respectively. Ondo and EKiti States also own 6.6% and 5.2% respectively in BEDC. The FG owns 5.8% giving the states and federal government a combined stake of 40%.
The letter was written as a formal notification to NERC of the collective intent of the State Governments where BEDC operates regarding their residual equity in BEDC. The State Governments expressed dissatisfaction with the operational deficiencies and service delivery failures of BED stating that the provision of reliable electricity is a core priority and essential for the welfare and development of their states’ populations.
“After a thorough evaluation of the operational deficiencies and service delivery failures to our states, the BEDC State Governments intend to exercise our shareholder rights in BEDC, to ensure the efficient provision of electricity services to our citizens. The provision of reliable electricity to enhance the welfare and development of our people is a core priority of our governments, as such, we cannot afford to overlook the critical importance of ensuring that electricity distribution services provided by BEDC meet the needs and expectations of our populace henceforth.
The BEDC state governor also expressed their intention to exercise their rights as shareholders to address these concerns. This includes an active role in decision-making at both the board and management levels to improve operations and service delivery, as well as to extend electricity access to unserved and underserved communities.
“In exercising our shareholder rights, the BEDC State Governments intend to actively participate in the decision-making processes of BEDC both at the Board and Management level of the Company, with the goal of strengthening the operations of the Company to enhance service delivery, improve operational efficiency, increase electricity access to unserved and underserved communities, and ultimately, transform the electricity sector within our States.”