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Federal Government Mandates Sale of DisCos Managed by Banks and AMCON to Technical Experts

April 22, 2024

 

 

 

In a decisive move aimed at revitalizing Nigeria’s energy sector, the federal government has mandated the resale of electricity Distribution Companies (DisCos) currently under the management of banks and the Asset Management Corporation of Nigeria (AMCON) to reputable technical power operators within the next three months.

This directive, disclosed by the Minister of Power, Chief Adebayo Adelabu, during an oversight visit to the ministry in Abuja, underscores the government’s commitment to ensuring efficient management of energy distribution assets. Chief Adelabu emphasized the need for technical expertise in the administration of these critical utilities.

“We have put pressure on NERC to make sure that they raise the bar of regulatory activities on electricity distribution companies (DisCos). If they have to withdraw licenses for non-performance, why not? If they have to change the board and management, why not?” stated Chief Adelabu.

Five DisCos currently fall under the purview of AMCON and bank lenders, including Abuja Electricity Distribution Company (AEDC), Benin Electricity Distribution Company (BEDC), Kaduna Electricity Distribution Company (KEDCO), Kano Electricity Distribution Company, and Ibadan Electricity Distribution Company (IBEDC). These entities were placed under bank management due to their inability to settle loans acquired during the privatization process in 2013.

Highlighting the urgency of the situation, Chief Adelabu stressed, “All the DisCos that are still under AMCON and bank lenders, within the next three months they must be sold to technical power operators with a good reputation in utility management. We can no longer afford AMCON or the banks to run our Discos. This is a technical industry and must be run by technical experts.”

The move signifies a significant step towards enhancing the operational efficiency and reliability of Nigeria’s electricity distribution networks. It is anticipated to usher in a new era of sustainable energy management, driving economic growth and development across the nation.

 

Credit: Leadership

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