The federal government has announced plans to divest ownership of the five electricity Distribution Companies (DisCos) currently managed by banks and Asset Management Company (AMCON) within the next three months to reputable technical power operators.
Under the current management arrangement, Abuja Electricity Distribution Company (AEDC) is overseen by the United Bank of Africa (UBA), Benin Electricity Distribution Company is managed by Fidelity Bank, while Kaduna, Kano, and Ibadan Electricity Distribution Companies are under the management of various financial institutions due to their inability to repay loans.
The Minister of Power, Chief Adebayo Adelabu, disclosed this during an oversight visit to the ministry in Abuja. He emphasized the need for technical expertise in managing energy distribution assets and highlighted the ministry’s efforts to ensure performance within the Nigerian Electricity Supply Industry (NESI).
Adelabu emphasized the importance of tough decisions regarding the DisCos, indicating that the ministry would urge the Nigerian Electricity Regulatory Commission (NERC) to take necessary actions, including revoking licenses for underperforming DisCos and changing their management boards.
He stressed the urgency of selling DisCos currently under AMCON and bank management to technical power operators within the next three months, citing the need for industry expertise in utility management.
Addressing concerns about the efficiency of DisCos, Adelabu noted the need to reorganize them and highlighted challenges such as asset stripping by some operators. He assured the committee of the government’s commitment to resolving the power sector crisis, including bridging the metering gap and completing unfinished projects with funding from the Nigerian Sovereign Investment Authority (NISA).
Adelabu underscored the historical nature of the power sector crisis and urged the committee’s support in approving funds for project completion and addressing grid collapse issues attributed to the lack of Supervisory Control and Data Acquisition (SCADA).