FG To Invest N72bn In DisCos As Part Of Its 40% Stake

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The Federal Government is set to invest about N72 billion in an attempt at improve the distribution infrastructure across the 11 electricity distribution companies (DisCos) as part of it 40 percent stake in the DisCos. This planned financial intervention would be the first ever direct funding to the Discos by the government since the exercise was completed in 2013. The government had during the privatisation exercise retained 40 per cent stake in the Discos.

This was disclosed earlier within the week by the Permanent Secretary of the Ministry of Works Mr. Louis Edozien, on behalf of the Minister of Power Works and Housing, Mr. Babatunde Fashola during the commissioning of the 132/33kV transmission substation with a 40MVA transformer, built by the Transmission Company of Nigeria in Mayo Belwa area of Adamawa State.

 

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Mr. Fashola also affirmed this while presiding over the May 2018 edition of the monthly power sectors’ operators meeting in Yola, capital of Adamawa State. “I can also report that we are making progress on the federal government’s planned intervention in the distribution value chain to help deliver the 2,000MW that is constrained by distribution equipment”.

“The advertisements for quotation by original equipment manufacturers for transformers, breakers, and associated equipment compiled by the Discos have been published, and we await responses,” said Fashola.

Fashola said the investment would be part of the government’s 40 per cent shareholding in the Discos. He noted that while the Federal Executive Council (FEC) has approved the investment plan, adverts calling for original equipment manufacturers (OEM) for transformers and other distribution equipment to come up with their proposals have gone out and the government was waiting for responses.

 

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The Federal Government had in time past indirectly invested in the operations of the DisCos via the N701 billion Nigeria Bulk Electricity Trader (NBET) loan and the N213 billion Nigerian Electricity Market Stabilization Fund (NEMSF) loan through the Central Bank of Nigeria (CBN).

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About Omobright 302 Articles
A FUTA Alumnus, a geophysicist, a cartographer, a freelance writer and poet. Loves adventure, music, movies, football and food. Hates monotony. Hobbies are reading, writing and travelling. Interested in human, society, academics and power(energy) sector.

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