The Federal Government is set to retake full possession of the Yola Electricity Distribution Company with about N27bn.
The National Assembly approved the sum of N26,901,762,500 as refund for the acquisition of the company by private investors in the 2020 Appropriation Bill passed on Thursday.
The approval was listed as Item 188 under the Capital Supplementation component of the 2020 budget, based on the recommendations of the Senate and House of Representatives’ Committees on Appropriations.
Earlier in October 2019, the National Council on Privatisation has approved Transcorp Power Consortium as the preferred bidder for the Afam Electricity Generation Company (Afam Power Plc and Afam Three Fast Power Limited) with a bid price of N105.3bn (about $343.6m).
The council also had approved Quest Electricity Nigeria Limited as the preferred bidder for the re-privatised Yola Electricity Distribution Company with a bid price of N19bn (about $62m).The bid price is higher than the $59m paid by the previous core investor in 2013.
The YEDC is one of the 11 electricity distribution companies sold to private sector operators as part of reform of the nation’s power industry that unbundled the defunct monopoly, the Power Holding Company of Nigeria.
Integrated Energy Distribution and Marketing Company had acquired 60 per cent equity in the YEDC after paying $146.8m.
The Yola Disco was successfully privatised and handed over to the core investor in 2013.
However, a force majeure was declared in 2015 by the core investor citing insecurity in the North-East zone where the company covers.
Following this, the company was repossessed by the Federal Government through the Ministry of Power.