The sordid state of Nigeria’s power sector have made previous governments to privatise it for effective generation, transmission and distribution of power. In spite of these innovative ideas from the government with huge amount of money involved in the exercise, there is virtually nothing to show for it.
Apparently disturbed by the ugly trend, the Federal Government has decided to inject fund into the sector.
Meanwhile, the electricity distribution companies (DisCos) have cautioned the government against unilaterally investing N72 billion to upgrade their distribution networks, stating that they may not be able to recover it from the current tariff they charge for distributing power to consumers. The DisCos have reiterated that tariff paid by consumers and electricity users cannot encourage the power distributors. The value is minimal.
Expressing its views on government intervention, the Association of Nigerian Electricity Distributors (ANED), explained that the DisCos would have welcomed the planned investment but were cautious of it based on their evaluation of its processes.
If the investment is not evaluated and appropriated by the Nigerian Electricity Regulatory Commission (NERC), as part of the laws governing investments in its networks, it will become a pitfall to DisCos operations. Liquidity crisis in the sector has bedevilled the operations of DisCos, hence any intervention might result to a Greek gift that will further hamper progress.