The Yola Electricity Distribution Company (Yola Disco) has been acquired by Quest Electricity Nigeria. The deal has a five-year period to make the local electricity firm financially viable.
The acquisition cost Quest Electricity N19 billion, but the private investor is expected to disburse N28 billion in the next two years for an extensive upgrade of Yola Disco.
Aside from revamping the domestic power company, Quest Electricity also has insecurity issue to contend with in the Northern area of Yola Disco operation.
Speaking on the insecurity in the area, the chairman of Quest Electricity, Adamu Mele, said within a short period, the investor will upgrade the infrastructure of the acquired firm in order to work around the challenge.
Also commenting on the acquisition, and plan for Yola Disco, the director-general of Bureau of Public Enterprise, Alex Okoh, stated that, “this investment will be utilized for the purpose of carrying out an extensive upgrade of the company’s electricity distribution network, in order to bring the business to the level of financial viability.
“It is expected that this investment will deliver results within a period of five years”.
He further stated that the acquisition has shown reforming the power sector is the right step to take, “Notwithstanding the challenges in the power sector and the reaction that has trailed the privatisation process, this continued interest shows that the Federal Government took the right decision in reforming the power sector.
“this investment will be utilised for the purpose of carrying out an extensive upgrade of the company’s electricity distribution network, in order to bring the business to the level of financial viability. It is expected that this investment will deliver results within a period of five years”.