Tinubu Govt Commits to Selling Off Electricity Distribution Companies to Technical Operators Within Three Months


In a decisive move aimed at revitalizing Nigeria’s energy sector, the federal government has announced plans to auction off the five Electricity Distribution Companies (DisCos) currently managed by banks and Asset Management Company (AMCON). The announcement was made by the Minister of Power, Chief Adebayo Adelabu, during an oversight visit to the ministry in Abuja on Monday, April 22.

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The DisCos slated for sale include the Abuja Electricity Distribution Company (AEDC), currently under the management of the United Bank of Africa (UBA); Benin Electricity Distribution Company, managed by Fidelity Bank; and Kaduna, Kano, and Ibadan Electricity Distribution Companies, under the management of various financial institutions due to their inability to repay loans.

Chief Adelabu emphasized the necessity of entrusting energy distribution assets to technical experts, citing their pivotal role in the functioning of the Nigerian Electricity Supply Industry (NESI). He expressed determination to push the Nigerian Electricity Regulatory Commission (NERC) to revoke licenses of underperforming DisCos and overhaul their management boards if needed.

Furthermore, Chief Adelabu underscored the urgency of reorganizing the DisCos for enhanced efficiency, pointing out that the Ibadan DisCo’s size necessitates a reevaluation of its management structure.

Responding to concerns raised by Senator Isah Jibrin regarding asset stripping by previous operators, Chief Adelabu assured that revoked DisCo operators would be held accountable for restoring assets to their original condition.

Additionally, Chief Adelabu disclosed that the federal government has mobilized Messr Zigglass with $200 million (N32 billion) to supply three million meters, addressing a significant gap in meter provision. He reiterated the government’s commitment to bridging the current metering deficit within four to five years, leveraging funding from the Nigerian Sovereign Investment Authority (NISA).

However, the power sector’s challenges extend beyond distribution, as highlighted during the oversight visit to the Transmission Company of Nigeria (TCN). TCN Managing Director, Sule Abdulaziz, appealed to the committee for assistance in completing over 120 projects and addressing right-of-way issues, emphasizing the critical role of funding in tackling infrastructure challenges.

Independent System Operator (ISO) Executive Director, Engr. Nafisat Ali, flagged gas shortages as a major constraint in the industry, emphasizing the need for a reliable gas supply to meet demand.

The committee, led by Senator Eyinaya Abaribe, pledged to engage with the federal government to settle outstanding gas debts and ensure the timely completion of critical projects. They also committed to reviewing penalties for power asset vandalization and scrutinizing the recently revised tariff.

As the nation grapples with the complexities of its power sector, stakeholders remain hopeful that concerted efforts and strategic reforms will pave the way for a more resilient and sustainable energy landscape.

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Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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