Fashola, DisCos To Discuss N800 billion Debts In Sectoral Meeting

The next monthly power sectoral meeting, scheduled to hold this month will examine the challenges faced by the power sector and the way forward. One of the major points of discussion is set to be the debt of over N800 billion, owed by Ministries, Departments and Agencies (MDAs) to the DISCOs.

The meeting was requested by the Minister of Power, Works and Housing, Babatunde Fashola in order to proffer a solution the negative effects of the debt owed to the DISCOs and discuss improvement in power generation and distribution, metering and others that are vital to the growth of the sector. According to sources, the meeting will be hosted in one of Ibadan Electricity Distribution Company’s (IBEDC) franchise states.

One of the sources close to the Discos said; “There is no doubt that the issue of the over N800billion debts would be discussed at the next meeting. The energy distribution entities are yet to show remarkable progress, due to poor funding. The firms are not happy, due to the fact that they are unable to finance some transactions because of low liquidity.”

Eko Electricity Distribution Company (EKEDC), CEO, Oladele Amoda, said there was no investment in the sector, due to lack of fund.

He said the operators were no longer investing in the sector, adding that banks were not lending to the industry. He also urged the banks and investors to show interest in the industry, by injecting funds into the sector in order to make it competitive.
According to him, the inability of the operators to re-invest in the sector is the bane of the industry, advising operators to galvanise the potential of the sector for improved performance.

Busayo Oladejo

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