The Edo State Governor, Godwin Obaseki, has said plans are underway by Edo, Delta, Ekiti, and Ondo states, to buy back their shares from the Benin Electricity Distribution Company (BEDC) and reorganize the distribution company, providing a lasting solution to the electricity crisis in the affected states.
Obaseki said electricity is key in driving development in any society, noting that his government has over the past seven years taken deliberate steps to encourage investments in the electricity sector to grow the state’s economy.
Speaking to newsmen, Obaseki said he is in talks with the governors to buy back their shares in BEDC, ensuring Edo, Delta, Ekiti and Ondo states generate and distribute their own electricity.
He said, “I am discussing with my brother, the governor of Delta State, Rt. Hon. Sheriff Oborevwori, and one of the things we talked about is the technicality of electricity. People think of seeing light, forgetting about the technicality involved and the last man on that channel that distributes the light is the distribution company.
“I, Delta, Ekiti and Ondo governors, we have to approach Fidelity Bank and buy back the shares in BEDC. We would make an offer to buy that back to reorganize this company to enable us to have an Edo, Delta, Ekiti and Ondo Distribution Company.
“Without electricity, we can’t go anywhere. We have our own local grid through which we can distribute to various communities as without electricity we are not going anywhere. Electricity is needed for economic growth and development. Those who have cheaper gas will have cheaper electricity and it will lead to cheaper cost of manufacturing and production.”
The governor continued: “We don’t need to wait for Abuja for money but rather have a mind shift to activate and galvanize what we have to create the money our people need.
“Now we are all in darkness; any politics that keeps us in darkness is bad politics as everybody wants light no matter the political divide. No political party wants to stay in darkness, as the conversation started many months ago on purchasing the shares of BEDC, we can rapidly progress.
“The original buyers of the shares of BEDC know what they did. They went bankrupt as the bank took those shares and tried to sell to others but we have signified our interest to buy to ensure the bank doesn’t sell to the wrong people that will keep us in darkness again.”
He added: “We will buy, let us sit down to discuss. We want to buy the shares not because we want to run an electricity business or company but want to sit at the table to supervise and decide on the expert that will do it right. Maybe it’s time to take charge of our own territory. Benin electricity should give Benin light while that of Delta produces that of Delta State, it’s possible.”
It should be recalled that at the Nigeria Electricity Supply Industry Market Participants and Stakeholders’ Roundtable that was organised recently, President Bola Tinubu said the power sector privatization had failed to meet its objectives, adding that discos were undercapitalised to the tune of N2 trillion, a development that was responsible for why about 90 million Nigerians lack access to electricity.
“The national grid only serves about 15 percent of the country’s demand. This has left households and factories relying on expensive self-generation, which supplies 40 per cent of the country’s demand.
“What is worse is that the total amount of electricity that can be wheeled through the national grid has remained relatively flat in the last 10 years. The grid capacity has increased from just over 3,000MW to roughly 4,000MW today. Versus a 40,000MW target by 2020 that the Federal Government had set pre-privatisation,” The Punch reported President Tinubu to have said through his representative, Sodiq Wanka, the Special Adviser, Energy and Infrastructure, Office of the Vice President.
Benin Electricity Distribution Company is one of the successor distribution companies that emerged after the unbundling of the defunct Power Holding Company of Nigeria.
The company currently distributes electricity to Edo, Delta, Ondo and Ekiti states with a geographical coverage of 57,353 square kilometres.
At the end of the second quarter of this year, Benin Disco generated N40.80 billion as half year 2023 revenue, with 643,916 estimated customers and 626,241 metered customers out of 1.27 million total customers.
