FBN Holdings has taken control of Ikeja Electric and KEPCO Energy Resources, two major players in Nigeria’s power sector, adding to worries about the industry’s financial troubles. KEPCO owns 70% of Egbin Power, Nigeria’s biggest electricity generator.
This comes as both companies face a cash crisis estimated at 2 trillion naira ($1.31 billion). FBN Holdings subsequently appointed Kunle Ogunba and Associates as a receiver/manager for KEPCO Energy Resources Limited, a special purpose vehicle for Sahara Energy Resources Group Limited, owners of Egbin Power, Ikeja Electric and First Independent Power Limited(FIPL).
The latest development means six out of Nigeria’s 11 electricity distribution firms are now under receivership following their failure to repay loans used to purchase assets after the 2013 privatisation.
