In a recent development, Justice Nicholas Oweibo of the Federal High Court in Lagos has issued a prohibition order against the Nigerian Electricity Regulatory Commission (NERC), the Bureau of Public Enterprises, and Sahelian Power SPV Limited. The order prevents them from appointing Powercom or any other investor as a new core shareholder in the Kano Electricity Distribution Company. Furthermore, the respondents are also forbidden from engaging in any other bidding procedures for the sale of Sahelian's 60% stake in the company.
This comes after a report emerged earlier about the clash between two companies, Powercom and Future Energies Africa (FEA), over the acquisition of the Kano Electricity Distribution Company. The affected parties include Fidelity Bank, the receiver manager of Kano Electricity Distribution Company Plc, Patrick Ikwueto SAN, and Powercom Smart Grid Nigeria Limited.
FEA, the petitioner, has informed the court that the procedure used to select Powercom Smart Grid Nigeria (PSGN) as the preferred candidate to replace Kano Electricity Distribution Plc (KEDCO) was flawed. The process, according to FEA, did not comply with the rules and specifications set by the Bureau of Public Enterprises (BPE) and NERC. They argue that the government's 40% ownership stake in the company is held by BPE, while Fidelity Bank temporarily owns the remaining 60%.
Fidelity Bank initiated a bidding process, in collaboration with BPE, to find a capable buyer for their stake in KEDCO. However, FEA claims that they had already completed the execution of contracts and agreements through a Share Sale and Purchase Agreement to acquire the shares, which both BPE and NERC were aware of. Engineer Adam Ibrahim, an investor and consortium member of FEA, criticized Powercom's recent acquisition announcement, stating that FEA had already met the acquisition conditions outlined by BPE and NERC.
Despite FEA winning the contract and receiving a "No Objection" approval from BPE after a rigorous assessment and screening process lasting nearly a year, Fidelity Bank decided to suspend the process and choose a different bidder for unspecified reasons.
As FEA's complaints to BPE and NERC were allegedly ignored, they were left with no option but to pursue legal action. Engr. Ibrahim points out that NERC issued a "No Objection" for Powercom's acquisition despite FEA's pending complaint and the knowledge of a signed Share Sale and Purchase Agreement. Additionally, Future Energies had lodged a complaint against Fidelity Bank for attempting to interfere with the completed process.
The court's prohibition order is a significant development in the ongoing dispute between the parties involved in the acquisition of the Kano Electricity Distribution Company. It remains to be seen how this legal matter will unfold and what impact it will have on the future ownership of the company.
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