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The Bureau of Public Enterprise (BPE) has said that Quest Electricity Nigeria Limited has paid N19 billion to acquire Yola Electricity Distribution Company (YEDC),
Mr Alex Okoh, the Director-General of the agency, who disclosed this at the signing ceremony of the Share Sale and Purchase Agreement (SSPA), for the privatisation of Yola Electricity Distribution Company (YEDC).,said the company would invest N28 billion to transform the company over a period of two years.
Okoh said the new investor was committed to improving the quality of life of the inhabitants in the North East geopolitical zone, through aggressive investment drive, thereby providing an economic tool for combating the insurgency in the region.
He also said that the investment would be utilised to carry out an extensive upgrade of the company’s electricity distribution network,adding that it was expected that the investment would deliver results within a five-year period.
He said the results included reduction in Aggregate Technical, Commercial and Collections (ATC & C) losses from the current level of 80 per cent, which was the highest in the industry, to 29 per cent which translated to a 51 per cent loss reduction.
He stated that the customer base increased from 396,650 to 596,650, a 50 per cent growth and a significant increase in energy supplied from 1,305 Gigawatt Hours (GWh), to 1,714GWh.
He said similarly, as a result of the aggressive investment drive by the investor, it was expected that the increase in energy supply would stimulate economic growth and development in the region.
This, he said, would be through the creation of new industries and opportunities, attracting much needed investment and boosting job creation.
He acknowledged the rigorous process of the negotiation, which took place in the wake of the COVID-19 pandemic and its crippling impact on economic activities as well as the challenging operational environment in the North East region of the country.
Speaking,Mr Adamu Mele, the Chairman of Quest Electricity Limited,assured that the company would work round it to transform the distribution company within a short time through infrasctrucure upgrade.
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