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A Major Shake-up at Abuja Disco: Management Fired Over Poor Power Supply
A Major Shake-up at Abuja Disco: Management Fired Over Poor Power Supply
A noteworthy event occurred when the Abuja Electricity Distribution Company (AEDC) appointed Victor Ojelabi as its acting managing director and CEO following a significant management shakeup. This move comes as the sixth change in leadership for the embattled electricity firm in the last 10 years. The previous chief executives include Neil Croucher, Ernest Mupwaya, Akinwumi Bada, Engr. Adeoye Fadeyibi, and Chris Ezeafulukwe.
The shake-up at AEDC is closely linked to efforts by its major investor, the Transcorp Group, led by Tony Elumelu, to revitalize the struggling company. Notably, the Transcorp-led consortium acquired a 60 percent stake in AEDC after being approved as the preferred bidder by the national council on privatization in May 2023.
Prior to the Transcorp takeover, AEDC, which was granted a license in 2013, faced various challenges, including financial management issues, governance structure deficiencies, and exposure to regulatory and sector risks. In December 2021, the United Bank for Africa (UBA) took over the Disco due to the inability of its then-major stakeholder, Kann Consortium, to service a $122 million loan taken in 2013 to acquire AEDC. Subsequently, in April 2023, UBA moved to recover its loan facility from the firm, leading to the acquisition of the majority stake by the Transcorp-led consortium in May 2023.
The company also grappled with management challenges, customer relations, data centricity, revenue optimization, collection efficiencies, billing efficiencies, and the reduction of ATC & C (Aggregate Technical, Commercial, and Collection) losses, among other issues. Furthermore, AEDC faced declining revenues and cash flow, making it difficult to meet its financial obligations to service providers and contractors.
AEDC Chairman of the Board of Directors Dr. Stanley Lawson signed a memo announcing Victor Ojelabi’s appointment, which was distributed to all company employees. According to the memo, Victor has been tasked with driving the board-approved turnaround plan to reposition AEDC as the leading distribution company in Nigeria.
A reliable source close to the Transcorp Group emphasized that the appointment signifies a strategic move to reposition AEDC and solidify the group’s influence by overhauling and fully repositioning the Disco. The source highlighted the meticulous due diligence and preparatory measures undertaken by the group since acquiring the majority stake in Disco over seven months ago.
Echoing this sentiment, the acting managing director and chief executive officer of AEDC described the development as a major realignment for effectiveness. The implementation of the board-approved AEDC turnaround plan was further underscored, with key updates including the appointment of officers in acting capacities to drive the company’s repositioning efforts.
The changes in leadership and the overarching strategic realignment at AEDC signal a pivotal moment for the company and the electricity distribution sector in Nigeria. The concerted efforts to address longstanding challenges and chart a new course for the organization are indicative of a commitment to enhancing operational efficiency, customer service, and overall performance.
As AEDC navigates this transformative phase under new leadership, stakeholders, including customers, investors, and industry observers, will be keenly observing the trajectory of the company and the impact of the repositioning efforts on power supply, service delivery, and the broader electricity landscape in Nigeria.
In conclusion, the management shakeup at AEDC, driven by the imperative to address operational deficiencies and reposition the company for sustained success, underscores the dynamic nature of the electricity sector and the resolve to effect positive change. The appointment of Victor Ojelabi and the strategic realignment initiatives are poised to shape the future trajectory of AEDC and contribute to the advancement of the electricity distribution industry in Nigeria.
As the industry undergoes this period of transformation, the collective focus on revitalizing AEDC and enhancing its role as a leading distribution company holds the potential to yield far-reaching benefits for stakeholders and the Nigerian populace at large.
