FOLLOWING the outcome of an open book
review conducted on the financial records of
Ibadan Electricity Distribution Company plc
(IEDC), the Nigerian Electricity Regulatory
Commission found the company wanting
on two grounds of inappropriate financial
transactions and was subsequently fined a sum
of N50m. The fine was account of its failure
to secure a refund of an interest free loan the
Board of IEDC granted to its core investor
group. Information from the Commission
indicates that the industry regulator is also
reviewing the utilisation of NEMSF in all
other distribution companies.
The Commission had, vide its Order 173,
directed IEDC to recover the sum of N5.7bn
being the balance of the inappropriate loan
of N6bn granted by the utility to IEDMG, the
core investor in Ibadan Electricity Distribution
Company plc. The loan was sourced from
a total sum of N11.367bn disbursed to
IEDC under the Nigeria Electricity Market
Stabilisation Fund granted by the Central
Bank of Nigeria towards the improvement
of infrastructure in the company including
metering. The repayment of the loan to CBN by
the 11 distribution companies has continued
to be made as a first charge on the revenues
of the companies. The Commission has
reaffirmed that it will pursue the full recovery
of the misused funds from IEDC including the
accrued interest at NIBOR + 10%.

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