The Federal Government of Nigeria has announced its intention to find new owners for several power Distribution Companies (Discos) currently under receivership. This decision aims to secure reputable operators for the distressed Discos that have been managed by banks and the Asset Management Corporation of Nigeria (AMCON) due to financial instabilities.
Chief Adebayo Adelabu, Minister of Power, disclosed this strategy during a meeting with the Senate Committee on Power, chaired by Senator Enyinnaya Abaribe, in Abuja. The move targets Discos such as Abuja Electricity Distribution Company, managed by United Bank of Africa, and Benin Electricity Distribution Company, overseen by Fidelity Bank and Afreximbank. Others like Kaduna, Kano, and Ibadan Discos are under AMCON due to their significant debts.
Minister Adelabu stressed the importance of professional management in the energy sector, emphasizing that the expertise required to operate these utilities should come from seasoned power industry professionals, not financial institutions.
Simultaneously, the Minister called on sub-national governments to leverage the new electricity law to invest in power infrastructure, which could serve as a reliable backup to the national grid. This follows his declaration of an ambitious plan to elevate power generation from the current 4,000 megawatts to 6,000 megawatts shortly.
Furthermore, during a separate meeting with the Senate delegation, Sule Abdulaziz, Managing Director of the Transmission Company of Nigeria (TCN), appealed for additional funding to complete over 100 ongoing projects essential for bolstering the national grid. Abdulaziz highlighted issues such as funding shortages and rights of way as significant obstacles. He also mentioned vandalism, particularly in the North-east and South-east, as a critical challenge needing urgent resolution.
In response to these infrastructure challenges, Abdulaziz proposed a collaboration with Chinese companies financed by Chinese banks to construct a super grid that would enhance national transmission capabilities.
The Senate, represented by Senator Abaribe and other lawmakers, expressed concerns over the frequent grid collapses and recent electricity tariff hikes, setting a date for a comprehensive investigative hearing to address these issues. This proactive legislative inquiry aims to identify solutions and potentially enact new laws to ensure stable and sufficient power supply across the nation.
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