Ibadan Electricity Distribution Company Limited, IBEDC, Monday got a reprieve from the 21 days order given to it by the Nigerian Electricity Regulatory Commission, NERC within which to dissolve its present Board of Directors.
Ruling in a case with suit no: FHC/ABJ/CS/665/18 between Ibadan Electricity Distribution Company Plc (IBEDC) & 8 Ors v Nigerian Electricity Regulatory Commission, brought before the Federal High Court, Abuja, the presiding Judge, Justice Nnamdi Dimgba, ruled that the parties are to maintain the Status quo prior to the NERC Order of the 19th June in order to maintain the rest of the matter.
Justice Nnamdi Dimgba further ruled that there shall be accelerated hearing to hear the merits of the matter.
With this ruling, NERC’s earlier Order giving IBEDC 21 days order within which the current Board of the company be dissolved is now temporarily on hold until the court comes to a final ruling on the Order.
The matter has now been adjourned to 15th of October 2018 for the hearing of the last substantive suit.
It will be recalled that NERC in an Order of June 19th directed IBEDC to put machinery in motion for the dissolution of its current Board within a 21 day period, citing alleged default in the recovery of what it described as an inappropriate shareholder loan of N6 billion granted to Integrated Energy Distribution and Marketing Group (IEDMG) Ltd by the utility company.
The IBEDC Board, however, was to swiftly respond to the allegation, contending that it has lived up to its financial commitment to IBEDC, revealing that as at Thursday 14 June 2018, it had paid its monthly commitment up to date.
The new twist of taking the matter before the Federal High Court was apparently a move to get the issue resolved legally once and for all as many industry watchers noted that the NERC action was capable of discouraging investors from investing their funds in the Nigerian economy.