The Federal Government has ordered the resale of electricity Distribution Companies (DisCos) now under the management of banks and the Asset Management Company (AMCON) 90 days to reputable power operators.
The order was given by the Minister of Power, Adebayo Adelabu, when the Senate Committee on Power visited the ministry in Abuja on oversight.
Mr Adelabu said very soon tough decisions would be taken on the DisCos, saying they are the last lap of the sector.
The Federal Government in conjunction with Fidelity Bank and AMCON in a move to save the companies from insolvency, among other reasons, in 2022 took over the affairs of Kano Electricity Distribution Company (KEDCO), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), Kaduna Electric, and Port Harcourt Electricity Distribution Company (PHED).
According to the Minister, the decision became necessary due to their continued poor performance, which he said was a setback to the Nigerian Electricity Supply Industry (NESI).
He said the ministry will prevail on the Nigerian Nigerian Electricity Regulatory Commission (NERC) to revoke underperforming licenses and also change the management board of the DisCos if it becomes the solution.
Speaking further, Mr Adelabu disclosed that efforts were ongoing to bridge the nation’s metering gap in the next four to five years.
He disclosed that the Federal Government has mobilized a company named Messr Zigglass with $200 million to supply three million meters that were yet to be supplied to date.
According to to him, President Ahmed Tinubu has directed that the contract be revoked, adding that the funding is coming from a seed capital of N100billion and N75billion.
Chairman, Senate Committee on Power, Senator Enyinnaya Abaribe, said the committee was on an oversight function and familiarisation tour to the Federal Ministry of Power in Abuja.
Commenting on the issue of the new Band A tariff increase, Abaribe said the Senate had summoned the minister of power, Adebayo Adelabu, and the top echelon of the National Electricity Regulatory Commission (NERC) to appear before it for an investigative hearing on the recent electricity tariff hike in the country.
