DisCos reject move by FG to take over power firms

The Association of Nigerian Electricity Distributors (ANED) has rejected reported plans by the federal government to repossess the distribution companies (DisCos).

It had earlier been reported that the government is considering taking over the distribution assets from the investors and pay them off with N736 billion. The FG described the investors as a failure.

Sunday Oduntan (pictured), ANED’s executive director for research and advocacy, said the move is not a desirable outcome for a sector already facing multiple challenges.

He said the DisCos are supporting the federal government in addressing the challenges affecting electricity distribution in the country.

“The federal government and the DisCo investors remain committed to working in partnership to address the current challenges of retail electricity distribution, as evidenced by the recent Siemens initiative and recent regulatory activities,” he said in a statement.

“It is the hope and expectation of the DisCo investors and operators that, collectively, the aforementioned initiatives and activities, in tandem with respect for sanctity of contract, increased regulatory and policy certainty, will provide the enabling environment that will result in a Nigerian Electricity Supply Industry (NESI) that is commercially viable and sustainable, thereby attracting the desperately needed investment that continues to be elusive in the sector.

“We are troubled that a sector that is already bedevilled with multiple challenges now has to deal with sensationalist and irresponsible journalism rather than an informed discussion of how we can move the sector forward.”