The Edo State Governor, Mr. Godwin Obaseki has revealed plans to lead a coalition of Edo, Delta, Ekiti, and Ondo states in purchasing their shares from the Benin Electricity Distribution Company (BEDC) to address the persistent electricity crisis in the region.
The initiative aims to reorganize the distribution company, ensuring a lasting solution to the power challenges experienced by the affected states.
In recognizing the vital role of electricity in driving development, Governor Obaseki emphasized that his government has actively encouraged investments in the electricity sector to stimulate the growth of Edo State’s economy over the past seven years.
Obaseki stated his discussions with his counterparts to repurchase shares in BEDC, enabling the four states to generate and distribute their electricity. He stressed the technical complexities involved in electricity distribution, highlighting the pivotal role of distribution companies in delivering reliable power to end-users.
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.”
“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 governor emphasized the significance of electricity for economic growth and development, underscoring the need to have local control over the distribution process. He further expressed the intention to approach Fidelity Bank to repurchase the shares and reorganize the company, forming the Edo, Delta, Ekiti, and Ondo Distribution Company.
Governor Obaseki proclaimed that waiting for financial support from Abuja is not necessary. Instead, he advocated for a change in mindset to activate the potential within the region and generate the required funding independently. He stressed the urgency of the situation, as the people desire access to reliable electricity regardless of their political affiliations.
Highlighting the previous mismanagement of the shares by the original buyers, the governor affirmed the coalition’s interest in purchasing the shares to prevent misguided individuals from acquiring them and perpetuating the darkness experienced by the region.
“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 stated.
Governor Obaseki clarified that the intention is not to run an electricity business but to oversee the operations and ensure that the right experts are appointed to manage the distribution.
He envisaged a future where each state has control over its electricity production, emphasizing the possibility of Benin Electricity providing light for Benin, while Delta produces electricity for Delta State.
The current power sector privatization was criticized by President Bola Tinubu, who highlighted its failure to meet its objectives, including the undercapitalization of distribution companies. This deficiency has resulted in approximately 90 million Nigerians lacking access to electricity. The national grid has remained stagnant, unable to meet the country’s growing demand.
The Benin Electricity Distribution Company, which covers Edo, Delta, Ondo, and Ekiti states, is one of the distribution companies that emerged following the unbundling of the Power Holding Company of Nigeria. As part of its revenue, the company generated N40.80 billion in the first half of 2023, serving approximately 643,916 customers out of a total of 1.27 million.
